Cheque Return Reasons: What Each Code Means and How to Resolve

Published Nov 6, 2026 Updated Nov 6, 2026 16 min read

Quick answer: A cheque return happens when the drawee bank refuses to pay a cheque and sends it back with a two-digit reason code on the return memo. Codes 01 to 92 come from Annexure D of the Uniform Regulations and Rules for Bankers’ Clearing Houses. Codes such as 01 (funds insufficient) are the customer’s fault, while codes such as 36, 41 and 70 are technical returns that carry no penalty charges under RBI rules.

Key takeaways

Every returned cheque comes with a return memo showing a code number and a short reason.
RBI circular DPSS.CO.CHD.No. 2030/03.06.01/2012-2013 (May 7, 2013) bars banks from charging customers for returns that are not their fault.
Technical returns must be re-presented in the next clearing cycle, within 24 hours excluding holidays, with an SMS or email alert to the customer.
Code 70 “Advice not received”, Code 41 “Item listed twice” and Code 36 “Wrongly delivered / Not drawn on us” are all on the RBI’s “customer not at fault” list.
Only some returns, mainly funds-related ones, lead to a criminal case under Section 138 of the Negotiable Instruments Act, 1881.

What Is a Cheque Return and Why Do Banks Use Reason Codes?

A cheque return is the formal refusal by the paying (drawee) bank to honour a cheque presented in clearing. The bank sends the cheque, or in the Cheque Truncation System (CTS) its image record, back to the presenting bank with a standard return reason code. The code tells the payee and drawer exactly what went wrong and who needs to fix it.

“Cheque return” and “cheque bounce” mean the same event in everyday use. Banks use the term “return” because many returns have nothing to do with money. A cheque can be returned because the image was unclear, the clearing data was duplicated, or the item reached the wrong bank.

The codes are uniform across all banks in India because they come from one source: Annexure D (Model List of Objections) to the Uniform Regulations and Rules for Bankers’ Clearing Houses (URRBCH), published by the Reserve Bank of India. State Bank of India publishes the same list on its customer care page.

Where to Find the Return Reason

Return memo: A printed slip handed back with the cheque, showing cheque number, amount, date of return, the code and the bank’s stamp.
Bank SMS or email: Most banks send an alert with the return reason within the same day.
Account statement: The entry usually shows “CHQ RTN” or “INWARD RETURN” with the code or reason text.
Net banking: Many banks show the reason under cheque status or transaction details.

Keep the original return memo. It is the key document if a Section 138 cheque bounce case is ever filed.

Complete List of Cheque Return Reason Codes

The table below lists every code in Annexure D, grouped the way the RBI and SBI group them. Codes marked “No” in the last column are on the RBI’s illustrative list of returns where the customer is not at fault.

Funds, Drawer and Signature Codes (01 to 17)

Code	Reason for Return	Customer at Fault?
01	Funds insufficient	Yes
02	Exceeds arrangement	Yes
03	Effects not cleared, present again	Yes
04	Refer to drawer	Yes
05	Kindly contact drawer/drawee bank and please present again	Depends
10	Drawer’s signature incomplete	Yes
11	Drawer’s signature illegible	Yes
12	Drawer’s signature differs	Yes
13	Drawer’s signature required	Yes
14	Drawer’s signature not as per mandate	Yes
15	Drawer’s signature to operate account not received	Yes
16	Drawer’s authority to operate account not received	Yes
17	Alteration requires drawer’s authentication	Yes

Stop Payment and Instrument Codes (20 to 42)

Code	Reason for Return	Customer at Fault?
20	Payment stopped by drawer	Yes
21	Payment stopped by attachment order	Yes
22	Payment stopped by court order	Yes
23	Withdrawal stopped owing to death of account holder	Yes
24	Withdrawal stopped owing to lunacy of account holder	Yes
25	Withdrawal stopped owing to insolvency of account holder	Yes
30	Instrument post dated	Yes
31	Instrument out dated/stale	Yes
32	Instrument undated/without proper date	Yes
33	Instrument mutilated; requires bank’s guarantee	No
34	Cheque irregularly drawn/amount in words and figures differs	Yes
35	Clearing House stamp/date required	No
36	Wrongly delivered/Not drawn on us	No
37	Present in proper zone	No
38	Instrument contains extraneous matter	No
39	Image not clear, present again with paper	No
40	Present with document	No
41	Item listed twice	No
42	Paper not received	No

Account, Crossing and Endorsement Codes (50 to 68)

Code	Reason for Return	Customer at Fault?
50	Account closed	Yes
51	Account transferred to another branch	Yes
52	No such account	Yes
53	Title of account required	Yes
54	Title of account wrong/incomplete	Yes
55	Account blocked (situation covered in 21 to 25)	Yes
60	Crossed to two banks	No
61	Crossing stamp not cancelled	No
62	Clearing stamp not cancelled	No
63	Instrument specially crossed to another bank	No
64	Amount in protective crossing incorrect	Yes
65	Amount in protective crossing required/illegible	Yes
66	Payee’s endorsement required	Yes
67	Payee’s endorsement irregular/requires collecting bank’s confirmation	No
68	Endorsement by mark/thumb impression requires attestation by Magistrate with seal	No

RBI/Government and Miscellaneous Codes (70 to 92)

Code	Reason for Return	Customer at Fault?
70	Advice not received	No
71	Amount/Name differs on advice	No
72	Drawee bank’s fund with sponsor bank insufficient (sub-members)	No
73	Payee’s separate discharge to bank required	No
74	Not payable till 1st proximo	No
75	Pay order/cheque requires counter signature	No
76	Required information not legible/correct	No
80	Bank’s certificate ambiguous/incomplete/required	No
81	Draft lost by issuing office; confirmation required from issuing office	No
82	Bank/Branch blocked	No
83	Digital certificate validation failure	No
84	Other reasons, connectivity failure	No
85	Alterations on instrument other than “Date” field (CTS)	Yes
86	Fake/forged/stolen draft, cheque, cash order or warrant	Yes
87	“Payee’s a/c credited” stamp required	No
88	Other reasons (please specify)	Depends
92	Bank excluded	No

Sources: RBI Annexure D to URRBCH; RBI circular dated May 7, 2013; SBI “Reason For Return” page. The “Yes” and “Depends” labels for codes not on the RBI annex reflect general banking practice, since the RBI list is illustrative and not exhaustive.

Customer at Fault vs Not at Fault: Why It Matters

The fault classification decides two things: whether you pay return charges, and whether the cheque is simply re-presented.

Point	Customer at Fault (e.g. 01, 12, 20, 50)	Customer Not at Fault (e.g. 36, 41, 70)
Who caused the return	Drawer (issuer of the cheque)	Bank, clearing process or issuing office
Return charges	Bank may levy charges as per its schedule	Not allowed under the RBI May 2013 circular
Re-presentation	Payee decides after fixing the issue	Bank must re-present in the next clearing, within 24 hours excluding holidays
Customer notification	Return memo and alert	SMS or email alert on re-presentation
Section 138 risk	Possible, mainly for funds-related codes	Generally not, since the drawer has not failed to pay

If your bank debits charges for a code on the “not at fault” list, raise a complaint with the branch, quoting the RBI circular. If it is not resolved, escalate under the Reserve Bank Integrated Ombudsman Scheme. Charges for customer-fault returns are covered in our guide to dishonoured cheque charges and consequences.

Advice Not Received Cheque Return Meaning (Code 70)

Code 70 “Advice not received” means the paying branch has not received the advance intimation (called an “advice”) that it needs before it can pay the instrument. It sits in the “RBI/Government” group (codes 70 to 76) of Annexure D. It is a technical return, and the RBI lists it among returns where the customer is not at fault.

Which Instruments Need an “Advice”

An advice is a message from the issuing office to the paying office confirming that an instrument was issued, with its number, amount and payee. It is typically required for:

Demand drafts and pay orders payable at a branch other than the issuing branch
Government and RBI instruments such as refund orders, pension or treasury payments
Dividend and interest warrants paid through a designated bank
Cheques drawn by sub-members through a sponsor bank arrangement

If the issuing office has not sent the advice, or the paying branch has not processed it, the instrument comes back under code 70. Our demand draft vs cheque guide explains why drafts depend on this inter-branch confirmation.

How to Resolve an Advice Not Received Return

Check the instrument type. If it is a draft, pay order or warrant, contact the issuing bank or office, not the person who handed it to you.
Ask the issuing branch to send or resend the advice to the paying branch. Share the instrument number, date and amount.
Get written confirmation that the advice has been sent.
Re-present the instrument. Your bank should not charge you, since code 70 is a “not at fault” return.
If it is a regular cheque, ask the drawer to call their branch. Some banks use high-value confirmation checks, and a missing confirmation can lead to a return.

For high-value cheques, the drawer can avoid most confirmation-related returns by registering the cheque under the Positive Pay System before handing it over.

Does Section 138 Apply to an Advice Not Received Return?

Not automatically. Section 138 of the Negotiable Instruments Act targets cheques returned because the drawer’s account lacks funds or the amount exceeds the arrangement. A code 70 return is usually an administrative gap between bank offices. Lawyers’ views differ where the return is used for an ordinary cheque and the drawer deliberately withheld confirmation, so take legal advice on your specific memo before sending a notice.

Item Listed Twice Cheque Return Meaning (Code 41)

Code 41 “Item listed twice” means the same cheque appeared twice in the clearing data, so the paying bank rejected the duplicate entry. It is an instrument-related technical code and is on the RBI’s “customer not at fault” list. No return charges should apply.

Why a Cheque Gets Listed Twice

Duplicate presentation by the collecting bank: The same image and MICR data were sent in two clearing sessions or twice in one session.
Scanning error: The cheque was scanned twice at the presenting branch or the bank’s clearing hub.
Re-presentation before the first result came back: The cheque was presented again while the first presentation was still pending.
Deposit at two channels: The payee dropped the same cheque in a drop box and also handed it over the counter, or deposited a photocopy.

How to Resolve an Item Listed Twice Return

Check your account statement first. In most code 41 cases, the first presentation has already been paid, and the return only applies to the duplicate.
If the credit is there, no action is needed. Do not ask the drawer for another cheque.
If no credit appears, ask your branch to trace the original presentation using the cheque number and clearing date.
Once confirmed unpaid, the bank should re-present the cheque once in the next clearing.
Never deposit the same cheque in two places. Follow a single channel, as explained in our guide on how to deposit a cheque.

Wrongly Delivered / Not Drawn on Us Cheque Return Meaning (Code 36)

Code 36 “Wrongly delivered / Not drawn on us” means the cheque reached a bank that is not the drawee bank, so that bank cannot pay it. The cheque is valid. It was routed to the wrong place. The RBI lists code 36 as a return where the customer is not at fault.

Common Causes of a Wrongly Delivered Return

MICR code misread or keyed in wrongly during scanning at the collecting bank, sending the item to another bank’s routing code
Old cheque book of a merged bank whose MICR or IFSC codes have been withdrawn after the merger
Damaged or smudged MICR band at the bottom of the cheque, causing an incorrect read
Payable-at-par cheques routed to the wrong clearing location or bank
Collecting bank selecting the wrong clearing grid or session

The MICR band and account details are printed at the bottom of the leaf. Our guide on where the account number is on a cheque shows how to read each part.

How to Resolve a Wrongly Delivered Return

Compare the MICR code on the cheque with the drawer’s actual bank and branch.
If the code is correct, ask your bank to correct its data entry and re-present. This is a processing error and should be free.
If the cheque belongs to a merged bank’s old series, ask the drawer for a fresh cheque from their new cheque book.
If the MICR band is damaged, request a new cheque, since banks cannot reliably process it.

Common Customer-Fault Codes and How to Fix Them

These codes account for most cheque returns that cost the drawer money or create legal exposure.

Code	What It Means	Fix
01 / 02	Not enough balance, or amount exceeds overdraft limit	Drawer funds the account; payee re-presents within validity
04	Bank refers payee to drawer without stating detail	Payee contacts drawer for the actual reason
12 / 14	Signature does not match bank records or account mandate	Drawer issues a fresh cheque with correct signature
20	Drawer instructed the bank to stop payment	Payee contacts drawer; legal advice if payment was due
30	Cheque dated in the future	Present on or after the post-dated cheque date
31	Cheque presented after validity expired	Ask for a fresh cheque; see cheque validity period
34	Amount in words and figures do not match	Fresh cheque; see how to write amount in words
50	Drawer’s account is closed	Payee seeks another payment mode; legal advice if a debt is due
85	Alteration on a CTS cheque, other than the date	Fresh cheque; CTS cheques cannot carry corrections

Code 85 is specific to CTS. Alterations or corrections on CTS cheques are not permitted, so even a countersigned correction to the payee name or amount leads to a return.

How to Resolve a Returned Cheque: Step-by-Step

If You Are the Payee (You Received the Cheque)

Read the code on the return memo and match it against the table above.
Check if it is a “not at fault” code. If yes, confirm your bank will re-present it within 24 hours. Ask for a reversal if charges were debited.
For funds or signature codes, contact the drawer in writing and keep a copy.
Track the validity date. A cheque is valid for three months from its date of issue.
For a funds return, if the drawer does not pay, send a legal demand notice within 30 days of receiving the return memo, as required under Section 138.

If You Are the Drawer (You Issued the Cheque)

Check your SMS and statement for the return reason.
Fix the cause: add funds, update your signature mandate, or issue a fresh cheque.
Inform the payee immediately, and pay through NEFT, RTGS or UPI if the cheque can no longer be used.
Respond to any legal notice within 15 days. Paying within this window prevents a Section 138 complaint.

Cheque Return Charges and Legal Consequences

Banks set their own cheque return charges in their service charge schedules, and amounts vary by bank, account type and whether the cheque was issued or deposited. Check your bank’s current schedule before relying on a figure.

Section 138 Timeline at a Glance

Stage	Time Limit	Source
Present the cheque	Within three months of the cheque date	RBI instruction on cheque validity
Send demand notice to drawer	Within 30 days of receiving the return memo	Section 138(b), NI Act
Drawer pays the amount	Within 15 days of receiving the notice	Section 138(c), NI Act
File complaint in court	Within one month after the 15-day period ends	Section 142, NI Act

Section 138 applies in its text to returns for insufficient funds or amounts exceeding the arrangement. The Supreme Court has extended it in some judgments to returns such as account closed, stop payment and signature mismatch, where the facts show the drawer intended to avoid payment. The punishment can include imprisonment up to two years, a fine up to twice the cheque amount, or both.

Frequent Dishonour Rule

RBI rules ask banks to take action against drawers whose cheques are dishonoured repeatedly for insufficient funds. Banks may stop issuing fresh cheque books or close the account after repeated returns of high-value cheques in a financial year. Each bank sets its exact policy in its board-approved cheque dishonour policy.

How Continuous Clearing Affects Cheque Returns in 2026

The RBI moved CTS from batch processing to Continuous Clearing and Settlement on Realisation (CCSR). Phase 1 went live on October 4, 2025. Under Phase 1, cheques are presented through the day and the drawee bank must confirm “honoured” or “dishonoured” within a confirmation window. Cheques not confirmed by the end of the window are treated as approved.

Phase 2, which would have required confirmation within three hours, was scheduled for January 3, 2026. The RBI deferred it until further notice through a circular dated December 24, 2025, and revised the session timings to a 9:00 AM to 3:00 PM presentation window and a 9:00 AM to 7:00 PM confirmation window.

What this means for returns:

Faster return information: Payees usually learn about a return the same day rather than after two to three days.
Less time to fund the account: Drawers have a shorter gap between handing over a cheque and its presentation.
Return codes are unchanged: The same Annexure D codes apply under continuous clearing.

See our cheque clearing time guide for clearing timelines.

How to Avoid Cheque Returns: Checklist

For drawers:

Keep the balance above the cheque amount until it is debited.
Sign exactly as in the bank’s records, and follow the account’s operating mandate for joint or company accounts.
Write the amount in words and figures carefully and make sure they match.
Never overwrite or correct a CTS cheque. Cancel the leaf and use a fresh one.
Register high-value cheques under the Positive Pay System.
Replace old cheque books after a bank merger or IFSC change.

For payees:

Check the date, amount, payee name and signature before accepting.
Deposit well within the three-month validity.
Use one deposit channel only, and keep the counterfoil or acknowledgement.
For business receipts, prefer crossed cheques or account payee cheques.

What Experts Say

Bank operations staff commonly note that most technical returns, such as codes 36, 39 and 41, are resolved without the customer doing anything, provided the bank re-presents on time. The most frequent complaint they see is not the return itself but charges debited for “not at fault” codes, which customers can get reversed by citing the RBI’s May 2013 circular.

Practitioners handling cheque bounce matters generally advise payees to act on the date of the return memo, not the date they notice the SMS, since the 30-day notice period under Section 138 runs from receipt of information from the bank. They also caution businesses against relying only on the code wording. “Refer to drawer” (code 04) and “Kindly contact drawer/drawee bank” (code 05) can hide a funds problem, so a written query to the drawer is the safest next step.

Frequently Asked Questions

What is the meaning of advice not received in cheque return?

Advice not received (code 70) means the paying branch has not received the advance intimation from the issuing office confirming the instrument’s details. It mostly affects demand drafts, pay orders and government or dividend warrants. The RBI lists it as a return where the customer is not at fault, so no return charges should apply.

What does item listed twice mean in a cheque return?

Item listed twice (code 41) means the same cheque appeared twice in the clearing data, so the paying bank rejected the duplicate. In most cases the first presentation has already been paid. Check your account statement before asking the drawer for a new cheque.

What does wrongly delivered not drawn on us mean?

Wrongly delivered / Not drawn on us (code 36) means the cheque was sent to a bank that is not the drawee bank, usually because of a misread MICR code or an old cheque book of a merged bank. The cheque itself is valid. The collecting bank must correct the routing and re-present it.

Are banks allowed to charge for every cheque return?

No. Under the RBI circular dated May 7, 2013, banks can levy cheque return charges only where the customer is at fault. Codes such as 33, 36, 39, 41 and 70 are on the RBI’s illustrative list of returns where the customer is not at fault.

How soon must a bank re-present a technically returned cheque?

The RBI requires banks to re-present cheques returned for technical reasons in the immediate next clearing, not later than 24 hours excluding holidays. The bank must also notify the customer through SMS, email or a similar alert.

Which cheque return codes can lead to a Section 138 case?

Codes 01 (funds insufficient) and 02 (exceeds arrangement) fall directly under Section 138 of the Negotiable Instruments Act. Courts have also applied it to returns such as account closed, stop payment and signature mismatch, depending on the facts. Technical codes like 36, 41 and 70 generally do not support a Section 138 case.

Can I re-present a cheque after it is returned?

Yes, as long as the cheque is within its three-month validity and the cause of return has been fixed. For technical returns, the bank re-presents it automatically. For funds or signature returns, confirm with the drawer before depositing it again.

Disclaimer: This article is for general information and is based on RBI and bank publications available as of November 2026. It is not legal advice. For a Section 138 matter, consult a qualified advocate. FinPulse India does not represent any bank.