A cheque bounce can turn into a legal problem quicker than most people expect. When a bank returns a cheque unpaid due to insufficient funds, signature mismatch or account closure, it is legally called cheque bounce. Under Section 138 of the Negotiable Instruments Act 1881 , cheque bounce is a criminal offence in India. When a cheque is dishonoured, the payee sends a cheque bounce notice , also called a legal notice, giving the issuer a final chance to make the payment. If th