Check Bounce Rules: Everyone deposits their money in the bank. There are many ways to transact money from the bank. If you have a check book and you transact with cheques, then this news is for you only. According to the rules, if your check bounces, then for this you can be punished with a heavy fine as well as a few years in jail. Before handing over a check to someone, there are some important things, which we have mentioned in this article, must know them. So that you can avoid this fine. Let us tell you how you will be punished if your check bounces. Read this news in full…
What is check bounce?
Many times when someone gives the check to the bank for payment, it gets rejected. This is called bouncing of cheque. There can be many reasons for this. In this case, lack of sufficient funds in the account is a major reason. Even if there is a difference in the signature on the cheque, it gets bounced. In a transaction through cheque, the giver is called debtor and the person who takes the check and deposits it for payment is called creditor.
Penalty for check bounce
In case of check bounce, the amount is deducted from the account as a penalty. If your check has bounced, then you have to inform the debtor about it. That person will have to pay you within a month. If he does not pay within a month, you can send him a legal notice. Even after sending the notice, if he does not respond for 15 days, then a case can be registered against that person under Section 138 of the Negotiable Instrument Act 1881.
can be punished for two years
Bouncing of check is a punishable offense and for this a case is registered under section 138. For this situation, there is a provision of fine or imprisonment of two years or both. In such cases, the debtor has to be punished for 2 years and you have to pay the amount with interest. The case will be registered in the area of your residence.
Check should be cashed within three months
When the check bounces, the bank gives you a receipt. In which the reason for the check bounce is given. Keep in mind that the validity of any check is up to three months. After that the time limit of that check expires. That’s why you should get it cashed within 3 months of receiving the cheque.
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