Banking and monetary regulator Reserve Bank of India has directed all banks that they should make a clear mention of the reasons when they dishonor or return an unpaid check.

"Certain instances of banks not signing the cheque return memos stating that the memos are computer generated and therefore no signature is necessary, have been brought to our notice," read a statement by RBI.

It said that these come under violation of instructions as referred in the Uniform Regulations and Rules for Bankers' Clearing Houses (URRBCH), issued under Payment and Settlement Systems Act 2007 read with Payment and Settlement Systems Regulations 2008.

RBI said that when banks return an unpaid check, it should also contain an objection slip duly signed containing the reason for the dishonor.