Cheque Return Memo is a memo informing about the Dishonour of a Cheque to the Payee’s Banker first and then to the Payee. When a cheque is dishonoured, the Drawee (bank) immediately issues a ‘Cheque Return Memo’ to the Payee’s Banker mentioning the reason for non-payment. The Payee’s Banker then gives the dishonoured cheque and the memo to the Payee.