Cheque Bounce Rules: At present, online transactions are increasing rapidly, but there are still many people who prefer to pay by cheque. Payment through Cheque should be done very thoughtfully because even the slightest mistake while filling the Cheque can cause the Cheque to bounce and if the Cheque bounces, you may also have to pay a fine.
In today’s time, online transactions are increasing rapidly, but there are still many people who prefer to pay by cheque. Anyway, only Cheque are used for big transactions. In such a situation, you should make payment through Cheque very thoughtfully because you have to be very careful while filling the cheque.
Even the slightest mistake can cause the Cheque to bounce and you may also have to pay a fine if the Cheque bounces. In some situations, you may even have to go to jail. If you also use a Cheque book and your Cheque never bounces, then it is important for you to know about its rules… so let us know.
Cheque bounces due to many reasons like no or less balance in the account, change in signature, mistake in writing words, mistake in account number, overwriting etc. Apart from this, Cheque can also bounce due to reasons like expiry of Cheque period, closure of Cheque
account, absence of company’s seal on the cheque, exceeding the overdraft limit etc. If in any situation the Cheque bounces, then the bank deducts its fine from your account. If the Cheque bounces, the debtor has to inform it to the bank, after which the person has to make the payment within a month.
How much is the penalty for Cheque bounce?
Banks charge fine from their customers for Cheque bounce. This fine may vary depending on the reasons. These charges are different for different banks. This fine can range from Rs 150 to Rs 750 or 800. He can be jailed up to 2 years or fined double the amount of the cheque, or both. However, this happens only when the Cheque giver does not have sufficient balance in his account and the bank dishonors the cheque.
What could be the jail?
In India, Cheque bounce is considered a crime. According to the rules, if the debtor is unable to pay the Cheque within a month after it bounces, then a legal notice can be issued in his name. If the reply to this notice is not received within 15 days, then a case can be filed against such person under Section 138 of ‘Negotiable Instrument Act 1881’. After a case is registered against the debtor, he can be fined or jailed for two years or there is a provision for both.
