Home » Wealth Corner » What to do if your cheque gets lost in transit? 

What to do if your cheque gets lost in transit? 

Lost in transit: A guide on what to do if your cheque gets lost in transit

what if my cheque gets lost in transit


Cheques are among the most common financial instruments used to send and receive money. However, various problems can arise with the clearing of cheque payments. A minor issue with the spelling or the date is enough for a cheque to be rejected. Another reason for the payment not being processed is when the cheque gets lost in transit. This is a case when you drop the cheque in the cheque drop box but the payment is not realised due to the cheque being lost somewhere in the middle. 

It is a problematic situation and must be addressed carefully. In this article, we will educate you on the meaning of the cheque lost in transit, whose responsibility it is and what are the corrective measures to take once this happens. So, dive right in! 

What does a cheque getting lost in transit mean? 

The process of a cheque being credited is a long journey. It goes from the payer to the bank, through the clearing processes and finally to the payee’s account. 

The transit phase is the most crucial and also where the cheque usually gets lost. The cheque getting lost here means that the amount will not be credited to the account of the payee. 

The knowledge that the cheque is lost in transit comes after the payment remains unprocessed even after days.

Also read: How to leverage debt financing for business expansion?

Who takes responsibility for a cheque getting lost in transit? 

The cheque being lost in transit is not the responsibility of the account holder but that of the collecting manager. The cheque is lost after it enters the bank and thus, they bear full responsibility for the lost cheque. As a result, the customers are entitled to be reimbursed for any expenses that ensue and are also provided an interest charge for the time it takes to obtain a duplicate cheque. 

As against the cheques being lost in transit, the RBI holds the account holder responsible if the cheques are dishonoured due to a lack of sufficient funds. If an account holder’s cheque gets dishonoured four times in a financial year then the banks reserve the right to deny the account holder a fresh chequebook by alerting the customers on time. 

In this case, the dishonoured cheque is returned to the customer together with a memo stating the reason. 

Also read: What is residual dividend policy

What does RBI have to say? 

Reserve Bank of India has mandated all commercial banks to return dishonoured cheques to customers within a time frame of 24 hours. 

The Indian Banks’ Association issued a statement saying, “In respect of cheques lost in transit or at the paying bank’s branch, banks should immediately bring it to the notice of the account holder so that he can issue a stop payment instruction. He can also take care that other cheques issued by him are not dishonoured due to the non-crediting of the amount of the lost cheque.

What are the corrective measures for a cheque lost in transit? 

Now, let us finally understand the corrective measures of the problem, ‘What if my cheque gets lost in transit.’ The first step is to prove a lack in the services of the bank and submit proof of the cheque deposited. 

This can be done in the form of submitting a photocopy of the deposited cheque. Keep in mind that submitting a pay-in-slip alone might not be sufficient as it does not bear any bank endorsement. There is also another way in which you can register a complaint online on the website: https://secweb.rbi.org.in/BO/comp ltindex.htm. It will most likely be addressed by the bank within a month. 

The redressal process might seem lengthy but you can avoid it by monitoring the fund debit/credit. Any outstation cheque should be processed within 15 days while a local cheque should be processed within 48 hours. If the funds are not transferred in this time frame then it hints at a problem and the individuals can quickly issue a stop payment instruction. 

Also read: Bridge loan: A short-term solution for your financial needs


There is nothing to worry about in case your cheque gets lost in transit. There is an established procedure to address this problem and the account holders are protected from any charges levied on their account. All you have to do is understand what a cheque being lost in transit means, know your rights in the matter and present the bank a proof of their lack. By following these steps, you can rest assured of safe banking transactions. To learn more about such things, stay tuned to StockGro!

Enjoyed reading this? Share it with your friends.

StockGro Team

StockGro is India’s first and largest ‘Social Investment’ platform aimed at helping you master the art of “Trading & Investment”. Trade, Invest and get rewarded to Learn everything about ‘Investments’ the fun-filled way.

Post navigation

Leave a Comment

Leave a Reply

Your email address will not be published. Required fields are marked *