Cheque Bounce Rule: In today’s time, if you have to make payment to someone, then very few people make payment by cash and when it comes to a large amount, then people use online medium more.
Payment is done easily through this and nowadays there are many UPI apps, but it cannot be denied that people also use cheques to make payments. Not only this, many times people make advance payment by cheque. In such a situation, if you also make payment by cheque, then it becomes important for you to know what things you have to keep in mind. This is because if your cheque bounces, then you may get into trouble. So let’s know what rules you have to know before making payment by cheque.
What is the rule of cheque bounce?
If you make payment to someone by cheque and it bounces for some reason, a fine is deducted from your bank account. At the same time, you have to make the payment to the person who is supposed to receive the payment within a month. If you do not do this, you may get into trouble.
If the cheque has bounced and for some reason you are unable to make the payment even within a month, then a legal notice can be issued against you. You have to reply to this within 16 days. If you do not do this also, then a case can be filed against you under section 138 of the Negotiable Instrument Act 1881.
There is also a provision for punishment
Actually, if you make payment to someone by cheque and it bounces and even after that you do not pay the money, then in such a situation a case can be filed against you or you can be jailed for up to two years. There is a provision for this in the law. So avoid making such a mistake.
Keep these things in mind:-
- Whenever you make payment to someone by cheque, keep a record of it with you
- Give the cheque on the same date on which you have money in your bank account
- Never give a cheque to anyone just by signing it, fill in the amount and other details yourself etc.
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