Dishonour /Return of cheques: Need to sign/Initial the Cheque Return Memo

RBI through Rule 6 of the Uniform Regulations and Rules for Bankers’ Clearing House(URRBCH) in case of Dishonour/Return of unpaid cheques provide for signed/initialed objection slip (Return memo) on which a definite and valid reason for refusing payment should be stated along with “The Date of Return” on the return memo. These are critical inputs of Return Memo in case of recourse to legal action. Dereliction in not adhering to RBI directive may invite penal action.