Returned/Bounced Cheque

Find out what are the cheque returned reasons and the fees that will be incurred.

Refer to drawer: Clarifications have to be sought from the person who issued the cheque.
Effects not cleared: There were incoming funds to the cheque issuer’s account but they did not clear in time to fund this cheque.
Exceeds Arrangement: The cheque amount may have exceeded the transfer limit on the issuer’s account. Please clarify with the cheque issuer.
Awaiting Banker’s Confirmation: It is pending issuer’s bank confirmation to release the payment.
Post-dated Cheque: Cheque is deposited before the date indicated on the cheque.

You will be receiving an Image Return Document (IRD) of the cheque within 3-5 working days, once the cheque is bounced.
There will be no cheque return fee incurred for the cheque depositor.
The cheque return reason will be stated in the IRD.
Do liaise with the cheque issuer to confirm if the IRD can be re-deposited.
- This means that you may re-deposit the IRD at any DBS/POSB cheque deposit box (like a normal cheque) to get your funds.
- This means that the IRD cannot be re-deposited. To get your funds, please make alternative arrangements with the cheque issuer (e.g. fund transfer or write a new cheque).

For cheques that are returned due to the following reasons, you may incur a charge of S$40 per returned cheque.
- Refer to drawer due to Insufficient Funds
- Effects Not Cleared
- Exceeds Arrangement
- Awaiting Banker’s Confirmation
- Post-dated Cheque
If your account goes into an overdraft, an additional minimum overdraft interest fee of S$20 will be charged.
A handling Commission of 1/8% (min. S$10, max. S$100) per cheque plus postage of S$6.50 and agent charges (where applicable) will be charged for any unsuccessful clearing of other currencies (non-SGD) and non-local USD cheques.

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