What are crashed cheques?

Crashed cheques refer to cheques that are returned unpaid by the bank due to insufficient funds in the account of the issuer or other reasons such as a closed account or discrepancies in the cheque details. This situation can result in penalties for both the issuer and the recipient, and it may lead to legal consequences if the matter is not resolved. In some regions, "crashed" may also imply that the cheque has been dishonored, impacting the trust in the financial transaction.