There are many reasons for cheque bounce can be seen when you are presenting a cheuqe for clearance to the bank.
The insufficient fund is the specified reason for cheque bounce which tells us that there is no sufficient fund in the cheque drawer’s bank account
Funds insufficient
1
the meaning of 'exceeds arrangement' is a situation when the customer can utilize the limit of overdraft or cash credit facility but denied and not utilized.
Exceeds Arrangement
2
Means cheques in the debit account are in clearing cycle but fate is still unknown and also less or no fund in cheque drawer’s bank account.
Effects not cleared; present again
3
Refer to Drawer exact meaning is there are insufficient funds in the drawer's bank account. So due to a lack of funds issuing bank does not honor a cheque.
Means Drawer’s signature incomplete, illegible, differs, signature required, signature not as per the mandate, signature to operate account not received.
Signature (mismatch)
5
When the payee presents the cheque in the bank and under the bank clearing system process, the bank gets a payment stop request from the cheque Drawer
Stop Payment
6
When the payee presents the cheque in the bank and in the system process, the bank founds the cheque has a date out of the 3 months validity period or post dated.
Instrument post-dated
7
When the payee presents the cheque in the bank and in the system process, the bank founds that drawers bank account is closed or frozed due to wrong activity.
Account closed or Frozen
8
If there is any scribbling, correction or overwriting on the cheque, then the bank does not accept the cheque.
Damaged or overwritten cheque
9
If there is any other problem or reason with cheque or with bank then banks also can do cheque bounce with other reason.