Check kiting is an illegal scheme that occurs when individuals establish a false line of credit by exploiting the delay in the check clearing process between different banks.
Kiting, also known informally as 'kite-flying', refers to the practice of creating false or fraudulent checks to leverage the time delay in bank processing. This term is also known as the discounting of an accommodation bill at a bank, with the knowledge that the person on whom it is drawn will dishonor it.
