Find out what are the cheque returned reasons and the fees that will be incurred.
Common cheque returned reasons:
- Refer to drawer: Clarifications have to be sought from the person who issued the cheque.
- Effects not cleared: There were incoming funds to the cheque issuer’s account but they did not clear in time to fund this cheque.
- Exceeds Arrangement: The cheque amount may have exceeded the transfer limit on the issuer’s account. Please clarify with the cheque issuer.
- Awaiting Banker’s Confirmation: It is pending issuer’s bank confirmation to release the payment.
- You will be receiving an Image Return Document (IRD) of the cheque within 3-5 working days, once the cheque is bounced.
- There will be no cheque return fee incurred for the cheque depositor.
- The cheque return reason will be stated in the IRD.
- Do liaise with the cheque issuer to confirm if the IRD can be re-deposited.
This means that you may re-deposit the IRD at any DBS/POSB cheque deposit box (like a normal cheque) to get your funds.
This means that the IRD cannot be re-deposited. To get your funds, please make alternative arrangements with the cheque issuer (e.g. fund transfer or write a new cheque).
- This means that you may re-deposit the IRD at any DBS/POSB cheque deposit box (like a normal cheque) to get your funds.
- For cheques that are returned due to the following reasons, you may incur a charge of S$40 per returned cheque.
- Refer to drawer due to Insufficient Funds
- Effects Not Cleared
- Exceeds Arrangement
- Awaiting Banker’s Confirmation
- If your account goes into an overdraft, an additional minimum overdraft interest fee of S$20 will be charged.
- A handling Commission of 1/8% (min. S$10, max. S$100) per cheque plus postage of S$6.50 and agent charges (where applicable) will be charged for any unsuccessful clearing of other currencies (non-SGD) and non-local USD cheques.
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