Cheque Bounce Rules: We all definitely get to hear about cheques. Those who do banking work are well aware of cheques and also know that online mode and UPI etc. are the modern means of money transactions, but the work of withdrawing money through cheques has been going on for years. However, one thing that people know a little less is that if the cheque bounces or gets rejected, then people have to pay a penalty and it can also affect their CIBIL history. There is even a provision for punishment in more serious cases. Here you can know how much penalty can be imposed if the cheque bounces.
What is cheque bouncing
When someone gives a cheque to the bank for payment and if it gets rejected due to lack of money in the account or any other reason, then it is called cheque bouncing. There can be many reasons for this but the main reason is not having sufficient funds in the account. Let us tell you that the difference in the signature on the cheque also causes it to bounce. When the cheque bounces, the amount is deducted from the account as penalty. On cheque bouncing, you have to inform the debtor about it and that person is required to make the payment to you within a month. If the payment is not made within a month, then a legal notice can be sent to him. Even after this, if he does not give any reply for 15 days, then a case can be filed against him under section 138 of the Negotiable Instrument Act 1881.
Provision of up to two years imprisonment in case of cheque bouncing
Check bouncing is a punishable offence and a case can be registered under section 138. There is a provision of fine or two years imprisonment or both. In cases of cheque bouncing, the debtor has to pay the amount with interest and 2 years imprisonment. The case will be registered at your place of residence. The penalty for cheque issued by the customer will be Rs 350 (one cheque returned in a month), Rs 750 in case the cheque is returned twice in the same month due to financial reasons. Rs 50 will be charged in case the cheque is returned for any reason other than signature verification.
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