What is a Dishonored Cheque? A cheque is said to be honored, if the banks give the amount to the payee. While, if the bank refuses to pay the amount to the payee, the cheque is said to be dishonored. In other words, dishonor of cheque is a condition in which bank refuses to pay the amount of cheque to the payee. The cheque should have been returned or dishonored because of insufficient funds in the drawer's account
insufficient funds in the account is a major reason for dishonoring a cheque