What is the full form of NSF?

The Full form of NSF is a Non-Sufficient Fund.

What is (NSF) Non-Sufficient Fund?

NSF Stands for Non-Sufficient Fund That means when a check is presented in the bank for its clearance/payment but the balance in the account of the drawer of the check is insufficient due to the insufficient balance the check will not be cleared this is called Non-sufficient Fund.

Learn More About NSF

NSF- Non sufficient fund
Learn More about Consequence of Check dishonour 

Reasons For Check Dishonour?

There are many reasons that check will not clear such reasons are,

  • Checks Cancelled:
 The account holder cancelling the checks the payments were not honoured because the account is closed. 

  • Account holder deceased:
  When the Drewer of the Check or original account holder is passed away on or before a check is honoured. then the accounts become frozen and the check will not be honoured at that time.
  •  Account Closed:
 If the account holder closed the account before the check is cleared the check becomes dis- honoured.
  •  Funds Insufficient:
 If the funds in the Drawers account is not Sufficient to make payments for the Check then the Check will not be cleared. 
  •  Check Mis Representation:
 If there is a Misrepresentation in the check. i.e The name of the Drawer is not Correct or not clear then the check will not clear.
  •  Signature Absent:
 If the signature on the Check is absent or did not match the Drawer Original signatures then the check will not be honoured.