Nowadays the trend of digital payment has increased a lot. Now people are transacting with Google Pay, Phone Pay as well as cheques, instead of cash.

When a person has to pay a large amount, then the safest check payment is considered, because it does not involve much tension. Deposited the check in the bank and after 3-4 days the check gets cleared.

But there is a problem with the check. If the check given to others bounces it bounces the check given to you by others then both can be in trouble.

In this article, we are going to tell you what check bounce is and what information you should know about check bounce. Let's know.

What is check bounce?

If someone has given you a check and there is not enough money in that account, then in this situation the check gets bounced. Apart from this, if you have given a check of 2 lakhs to a person and after depositing the check in the bank, the money does not reach his account, then even in this situation, the check can bounce.

What is the rule after check bounce?

Talk about the rule of check bounce, if a check bounces, and does not pay the check to the person giving the check within a month, then a legal notice can be issued in his name.

If the person does not respond even after 15 days of giving notice, then a case can be filed against such person under section 138 of the Negotiable Instruments Act 1881.

What will happen if the check bounces?

If the check bounces, then a fine can also be imposed on the person giving the check. This penalty is levied by the bank. In case of a check bounce, there can be a jail term of two years. If the check bounces more than twice, the account can also be closed by the bank.

Other reasons for the check not clearing

  • Not only due to check bounce, but also due to many other reasons, the check does not get cleared. As-
  • There is not enough money in the account of the person giving the cheque.
  • The check does not clear even if the signature in the bank account and the check are not the same.
  • If there is a difference in the number of words and figures, then the check does not clear.
  • The check is not cleared even if it is mutilated at someplace.
  • Due to the wrong name and method and overwriting on the cheque, the check does not get cleared.