When a cheque is returned unpaid, the banker should attach a slip containing brief remarks, to convey the reason for dishonouring the cheque. The following remarks are generally made:
(a) R.D. (Refer to Drawer): This remark is used only when there is reasonable ground to suspect the veracity of the cheque.
(b) N.S. (Not sufficient), N.E. (No. Effects): These are used where the drawer’s balance is inadequate to meet the cheque.
(c) E.I. (Endorsement Irregular)
(d) E.N.C. (Effect is not cleared): This is used when cheques deposited are not yet collected and not available for withdrawal.
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