Check bounce case: In an important decision, the Allahabad High Court has said that dishonour of cheques of banks which have merged with another bank will not constitute a crime under Section 138 of the NI Act. If the cheque bounces, the person who issued it will not be prosecuted under Section 138 of the NI Act. Justice Arun Singh Deshwal has given this order while accepting the petition of Archana Singh Gautam of Banda in the case of dishonour of cheques of a bank which has merged with Indian Bank.

Also Read: Capital Gain Tax: There may be exemption in capital gains tax for debt MF, Know what will be the benefit

The petitioner issued a cheque to the opposite party on 21 August 2023 which he presented to the bank on 25 August 2023. The bank declared it invalid and returned the cheque. On which the opposite party filed a complaint of cheque bounce against the petitioner under 138 NI Act. The petitioner challenged the summons order issued by the court in the High Court.

The court said that according to section 138 of the NI Act, if a voided cheque is presented to the bank and is rejected by the bank, then the offence under section 138 is not constituted. Allahabad Bank merged with Indian Bank on 1 April 2020 and its cheques were valid till 30 September 2021. After this, if the bank invalidates the cheque presented, then a case of cheque bounce is not made. The court said that according to the NI Act, the cheque issued should be valid, only then a crime is constituted when it bounces.

The post Cheque bounce case: High Court’s new order regarding cheque bounce, no case will be made in such cases; know the details first appeared on Rightsofemployees.com.

In today’s time, online transactions are increasing rapidly, but there are still many people who prefer to pay by cheque. Anyway, only Cheque are used for big transactions. In such a situation, you should make payment through Cheque very thoughtfully because you have to be very careful while filling the cheque.

Even the slightest mistake can cause the Cheque to bounce and you may also have to pay a fine if the Cheque bounces. In some situations, you may even have to go to jail. If you also use a Cheque book and your Cheque never bounces, then it is important for you to know about its rules… so let us know.

Cheque bounces due to many reasons like no or less balance in the account, change in signature, mistake in writing words, mistake in account number, overwriting etc. Apart from this, Cheque can also bounce due to reasons like expiry of Cheque period, closure of Cheque

account, absence of company’s seal on the cheque, exceeding the overdraft limit etc. If in any situation the Cheque bounces, then the bank deducts its fine from your account. If the Cheque bounces, the debtor has to inform it to the bank, after which the person has to make the payment within a month.

How much is the penalty for Cheque bounce?

Banks charge fine from their customers for Cheque bounce. This fine may vary depending on the reasons. These charges are different for different banks. This fine can range from Rs 150 to Rs 750 or 800. He can be jailed up to 2 years or fined double the amount of the cheque, or both. However, this happens only when the Cheque giver does not have sufficient balance in his account and the bank dishonors the cheque.

What could be the jail?

In India, Cheque bounce is considered a crime. According to the rules, if the debtor is unable to pay the Cheque within a month after it bounces, then a legal notice can be issued in his name. If the reply to this notice is not received within 15 days, then a case can be filed against such person under Section 138 of ‘Negotiable Instrument Act 1881’. After a case is registered against the debtor, he can be fined or jailed for two years or there is a provision for both.

NPS New Rule: The method of login to NPS account will change from April 1, know what is the new process

The post Cheque Bounce Rules : Now this action will be taken if Cheque bounces, know the rules first appeared on Rightsofemployees.com.

According to information received from sources, the government has made complete preparations in collaboration with RBI and can implement the new system soon. Recovery of money from another account simply means that the Cheque holder will have to repay the money under any circumstances. There may also be punishment.

CNBC report says that after this process is developed, the credit score of the company or person whose Cheque bounces will also deteriorate. Apart from this, loan default rules will also be applicable for these cases. This will reduce the cases of Cheque bounce and people will refrain from bouncing their own cheques.

Rules discussed in the meeting –

RBI and the government have held a meeting regarding this rule only last week. Regarding this rule, it was said that with its introduction, no new account will be opened if the Cheque bounces. Besides, money will also be recovered from other accounts.

In case of Cheque bounce, there is a provision of punishment of 2 years and it can be changed in the future. According to PTI, a Supreme Court panel had also suggested some changes in the Negotiable Instruments Act, 1881. Let us tell you that under the Negotiable Instruments Act, 1881 (NI Act), there is a provision for punishment for Cheque bounce.

The post Cheque Bounce Rule: Government is bringing this new rule regarding Cheque bounce, check details first appeared on Rightsofemployees.com.

You also get to hear the news of Cheque bounce in between. In view of the increasing cases, it is expected that the government can soon tighten the reins and change the rules related to it.

Expert committee has been formed , the government is working fast to bring new rules related to Cheque bounce. For this, the government has formed an expert committee of the Supreme Court, which suggests rules related to it. Apart from this, the Finance Ministry also held a high-level meeting some time ago for the new rules.

Money will be deducted from another account

If the account holder does not have enough money in his account and still he issues a cheque, then in this situation the incident of Cheque bounce comes to the fore. In such a situation, new rules can be implemented to prevent this, under which the Finance Ministry can deduct money from other bank accounts of the account holder if there is not enough balance in the account. Along with this, taking strict steps, there is also talk of imposing penalty in the form of legal action.

Will not be able to open another account

If a person’s Cheque bounces after the implementation of new rules of Cheque bounce, then after that he will not be able to open any other bank account. The government is hopeful that with the introduction of this rule, a reduction in the bounce rate can be seen.

Will not be able to take any loan

With the new Cheque bounce rules, there can also be a problem in taking a loan because the Cheque bounce can be shown as a loan default. If this happens, the CIBIL score of the defaulter may deteriorate and there may be problems in getting loans in future.

The post Cheque bounce Rules Change: RBI made major changes in these big rules related to Cheque bounce, know here new rules immediayely first appeared on Rightsofemployees.com.