In today's time, online transactions are increasing rapidly, but there are still many people who prefer to make payments by cheque. Anyway, cheques are used for big transactions. In such a situation, you should make payment by cheque very thoughtfully because a lot of caution has to be taken while filling the cheque. The cheque can bounce on the slightest mistake and in India, cheque bounce has been kept in the category of crime. In case of a cheque bounce, the bank charges a penalty. The penalty for cheque bounce is different in different banks. In some special circumstances, you can also be sued in case of cheque bounce and you may also have to go to jail.
Today, of course, most people prefer to transact money online, but still, the utility of cheques has not decreased. Even today, payment has to be made by cheque for many works. But sometimes due to some mistakes, the cheque bounces. Cheque bouncing means that the money that was not supposed to be received from that cheque could not be received.
For your information, you need to know that in case of cheque bouncing, the bank charges a penalty (penalty on cheque bounces). The penalty for cheque bounce is different in different banks. In some special circumstances, you can be sued in case of cheque bounce and you may also have to go to jail. Let us tell you the reasons for cheque bouncing, how much penalty is charged in such a case, and when the case comes to trial.
These are the main reasons for cheque bouncing:-
No or less balance in the account
Signature not matching
Error in writing words
Error in the account number
Overwriting
Expiry of the cheque
Closing of the account of the person who issued the cheque
Suspicion of a fake cheque
No company seal on the cheque etc.
You may have to pay this much penalty:
If your cheque bounces, the banks charge a penalty for it. The fine has to be paid by the person who has issued the cheque.
This fine can vary according to the reasons. Usually, a fine of Rs 150 to Rs 750 or 800 is charged.
Check bounce is considered a crime in India:
Let us tell you that in India, cheque bounce is considered a crime. According to the Negotiable Instruments Act, of 1881, a person can be prosecuted in case of a cheque bounce. He can be jailed for up to 2 years or fined double the amount of the cheque or both. However, this happens only in the situation when there is not enough balance in the account of the cheque giver and the bank dishonors the cheque.
Know when the case comes:
For information, let us tell you that it is not at all the case that as soon as the cheque is dishonored, a case is filed against the payee (Payee sued for check dishonor). When a cheque bounces, the bank first gives a receipt to the creditor, which states the reason for the cheque bouncing. After this, the creditor has to send a notice to the debtor within 30 days. If there is no response from the debtor within 15 days of the notice, the creditor can file a complaint in the magistrate's court within one month from the date of 15 days of the notice.
PC Social media