Cheque Return Intimation Letter
Tells the drawer their cheque has bounced.
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Dear Sir / Madam,
Cheque no. [cheque no.] dated [date] for $ [amount], issued by you in our favour, has been returned unpaid by the bank. The reason stated is: [reason].
We ask you to make good the amount within [number] days of receiving this letter, by a means that clears immediately. Bank charges arising from the return are also payable by you.
If payment is not received within that period we will consider the remedies available to us. We would much rather settle this directly, so please contact us if there is a difficulty.
What is a Cheque Return Intimation Letter?
A cheque return intimation tells the person who wrote a cheque that their bank refused to pay it, why, and what you now expect them to do about it. The bank hands the instrument back with a memo giving a reason — insufficient funds, signature mismatch, stale date, account closed. Sending the intimation the same week turns a silent failure into a dated, documented demand, which is what every later step, from a polite reminder to a formal claim, is built on.
Suppliers chasing a payment that failed, landlords whose rent cheque came back, schools with an unpaid term fee and lenders whose instalment cheque was dishonoured all send this letter. It is used inside businesses too: the accounts team writes to the customer the day the return memo arrives, so the salesperson who owns the relationship has a dated record rather than a rumour. Anyone holding a post-dated or security cheque that has been presented and returned needs the same letter before taking any further step.
Consequences differ sharply by country. In India, dishonour for insufficient funds or because the amount exceeds an arrangement is dealt with under the Negotiable Instruments Act, and a demand notice has to be sent within a fixed period counted from the return memo — confirm the current limits and the required wording before treating your letter as that notice. In the UK, the US, Canada and Australia a returned cheque is normally a civil debt with no criminal dimension, governed by your contract and the limitation period where the debt arose.
The intimation is not a court claim, not a garnishee or attachment order, and not automatically the statutory notice a jurisdiction may require, which has its own form, timing and service rules. It does not change the underlying contract, so interest or a late fee runs only if your invoice or agreement already provides for it. It also does not re-present the cheque: if you want the bank to try again you have to deposit it again inside its validity period, which is a separate act with its own risk.
What to put in a Cheque Return Intimation Letter
These are the details this template asks for. Anything left blank is marked in red on the preview so you can see what is still missing.
| Field | What goes in it |
|---|---|
| Business name | For example: Barton Supply Co. |
| Your address | For example: Unit 7, Barton Road, Columbus, OH 43212 |
| Cheque no. | For example: 004182 |
| Cheque amount | For example: 24,000 |
| Cheque date | Free text |
| Reason given by the bank | Free text |
| Days to pay | For example: 14 |
| Issued to (full name) | For example: James Whitfield |
| Their address | For example: 588 Kinnear Road, Columbus, OH 43212 |
How to write a Cheque Return Intimation Letter
Attach the bank return memo
Enclose a copy of the memo the bank issued with the returned cheque and quote its reason on the face of your letter. The drawer will often claim the bank made an error, and the memo settles it. Keep the original memo and the original cheque in your file — you may need both, and handing over the only copies weakens you if the matter goes further.
Identify the cheque without ambiguity
Give the cheque number, the date written on it, the drawee bank and branch, the amount in figures and words, and the invoice, rent month, loan account or booking it was issued against. A drawer who has written you four cheques should be able to tell from your first line which one you mean. Vague references invite a reply asking you to clarify, and that buys them three weeks.
State the exact amount now due
Set out the cheque amount, any return charge your bank levied on you, and any late fee or interest your agreement allows, then give a single total. Do not add a charge the contract does not support, because it gives the drawer a reason to dispute the whole figure rather than pay the part they owe. If you are waiving the return charge as a gesture, say so.
Fix a deadline and a payment route
Give a specific date rather than a period — by the 30th, not within ten days — and name how you want to be paid: bank transfer to a stated account, a demand draft, or a replacement cheque you will accept. If you are willing to present the cheque again, say that you will only do so on written confirmation that funds are in place. Ambiguity here produces another bounce.
Send it so you can prove delivery
Use a method that produces a receipt: registered or recorded post, courier with proof of delivery, or email to the address the contract names for notices, with the letter attached as a PDF. Keep the posting receipt and the tracking record with the memo and the cheque. If you later need to show that the drawer was told and did nothing, delivery evidence is the part people wish they had kept.
Common mistakes
- Waiting weeks to write because you expect a phone call to fix it, which lets the statutory or contractual clock run and narrows your options to slower ones.
- Handing the original cheque and return memo to the drawer when they promise to pay, leaving you with no instrument and no proof of dishonour if they do not.
- Copying a template that threatens criminal prosecution in a country where a bounced cheque is purely a civil matter, which turns a straightforward demand into something the recipient can complain about.
- Adding penalty interest that no invoice or agreement provides for, giving the drawer a clean reason to dispute the entire total instead of paying the principal.
- Depositing the cheque a second time before the drawer confirms funds, so you collect a second return charge and hand them the argument that you were careless.
Frequently asked questions
What should I write when a cheque bounces?
Identify the cheque by number, date, amount and the bank that returned it, quote the reason on the return memo, state what the cheque was for, give the total now due including any return charge your agreement covers, set a payment date and a payment method, and say what you will do if the date passes. Attach the memo. Keep the original cheque.
Is a cheque return letter the same as a legal notice?
No. This letter is an intimation and a demand. A legal notice is a formal step with its own required contents, time limits and method of service, and in some jurisdictions it must be sent within a set number of days of the return memo. If you intend your letter to serve as that notice, have someone qualified confirm the current requirements before you send it.
How soon should I send it after the cheque bounces?
Straight away, ideally the day the return memo reaches you. Early notice is what allows the drawer to fix it quickly, and where a statutory demand window exists it is counted from the return, not from when you got around to writing. Delay also makes it harder to argue the debt was pursued diligently if you later need to.
Can I recover the bank charge for the returned cheque?
You can ask for it, and many payers add it without argument. Whether you can insist depends on your contract or invoice terms — a supply agreement or tenancy that says dishonour charges are recoverable makes it straightforward, and silence makes it a request rather than a right. State it as a separate line so the payer can see exactly what they are being asked to reimburse.
Should I present the cheque again or send the letter first?
Send the letter first. Re-presenting on hope usually produces a second return, a second charge, and a weaker position. Ask the drawer to confirm in writing that funds are in place and on what date, then present. If they would rather transfer the money directly, take the transfer — it clears faster and removes the instrument from the problem.
This page explains general practice and is not legal advice. Requirements differ between countries and, in some cases, between states — check what applies where the document will be used.