Return Code

Description

Definition

Total Average Volume

National Averages
%

Code 1

"Refer to Drawer"

Drawer does not have adequate funds to meet the amount of the cheques.

119,916

53.10%

Code 2

"Effects not Realised"

Effects under collection, in clearing or just received for clearing

26,641

11.80%

Code 10

"Payee's Endorsement Required"

Endorsement of Payee or the subsequent endorsee required

1,682

0.74%

Code 11

"Payee's Endorsement Irregular"

Endorsement not in accordance with the requisites of a valid endorsement

187

0.08%

Code 12

"Payee's Endorsement Illegible"

Endorsement should be readable

53

0.02%

Code 13

"Post-dated Cheques"

Cheque bears a date which has not arrived yet.

4,500

1.99%

Code 14

"Payment postponed pending drawer's confirmation"

a) Countermand instructions in writing by drawer not received at the bank.
b) Where instructions were received from payee or another holder of a cheque.
c) The instructions even if in writing do not contain adequate information.
d) Where the paying banker has noticed a defect in the title of the party presenting the cheque.

9,315

4.12%

Code 15

"Credits not verified"

Only to be used under catastrophic circumstances(Eg: immediate aftermath of Tsunami/Floods etc,

2,169

0.96%

Code 16

"Funds in transition"

To be used only in respect of cheques drawn by Government departments where funds are inadequate to meet the amount of the cheque.

249

0.11%

Code 50

"Stale Cheque"

Where, the cheque bears a date 6 months or more prior to the date on the cheque.

924

0.41%

Code 51

"Account Closed"

Self-explanatory: Either by Bank or Customer

27,935

12.37%

Code 52

"Payment stopped by drawer"

Where, the drawer has given complete and unambiguous written instructions to stop payment.

15,899

7.04%

Code 53

"Drawer Deceased"

On receiving reliable notice of death of the drawer, this remark may be used.

108

0.05%

Code 54

"Funds attached"

a) Funds are attached by a Notice from the Inland Revenue Department, and the resultant balance is insufficient.
b) A prohibitory Notice/garnishee order issued by Court, which forbids the disbursement of the balance in the account. NB: If a specific amount is indicated in the Notice, any excess could be used to honour a cheque.
c) An injunction/enjoining order issued by Court, which forbids disbursement of funds in the account.

67

0.03%

Code 55

"Amount in words and figures differ"

Although Section 9 (2) of the Bills of Exchange Ordinance states that where there is a discrepancy between the sum payable expressed in words is the amount payable, the practice of bankers has been to return such cheques with the above mentioned answer except when they use their discretion to pay such cheques in the interest of the drawer.

1,653

0.73%

Code 56

"Drawers mandate determined"

Where the banks authority to pay cheques is determined in the following circumstances;
a) Notice of bankruptcy of the customer;
b) Notice of winding up a corporate customer/appointment of a provisional liquidator.
c) Notice of mental incapacity of the drawer
d) Notice of a lien on the credit balance of the account or assignment of funds
e) Reliable knowledge or notice that the customer is committing a Breach of Trust
f) Application of provision of Anti Money Laundering Laws or of The Convention on the Suppression of Terrorist financing.
g) This remark may also be used in instances where a branch network is not online and where an account has been transferred from one branch to another branch.

235

0.10%

Code 57

"Drawer's signature differs from specimen in possession"

Where, the paying banker is of the opinion that the drawer's signature on the face of the cheque is different to an extent from the specimen signature in possession that it warrants dishonour.

2,359

1.04%

Code 58

Alteration not confirmed by drawer"

When the cheque bears a material alteration, which has not been confirmed by the drawer, this remark will be used.

932

0.41%

Code 59

"Cheque Incomplete"

When any of the following particulars of a cheque has/have been omitted; a) Date, b) Payee's Name, c) Amount in words, d) Amount in figures, e) Drawer's signature

3,057

1.35%

Code 60

"Cheque not drawn in accordance with mandate"

When the mandate given to the bank requires more than one signature, and the persons authorised to sign must do so in a particular combination, and the cheque presented is a variance with the mandate, the above answer conveys the appropriate reason for dishonour.

1,278

0.57%

Code 61

"Cheque crossed to more than one bank"

The payee bank is entitled to return a cheque which is crossed to say, two banks unless one crossing is that of an agent of the other for collection of cheque.

16

0.01%

Code 62

"Cheque irregularly drawn"

To be used in a situation where irregularities are seen in the cheque drawn. Eg: “Cash” or “Order”

424

0.19%

Code 63

"Validity Expired"

To be used where a cheque bears a validity period of 30/60/90 days etc.,

615

0.27%

Code 64

"Scheduled in Error"

Read wrong bank or bank branch.

823

0.36%

Code 65

"Encoding Error"

If the encoded amount is different from the Customers hand written amount.

263

0.12%

Code 66

"Bad image"

If the captured image is not clear enough to honour the cheque.

4,520

2.00%

Total

225,822

100%