double fine - Rightsofemployees.com https://www.rightsofemployees.com Know Your Rights Wed, 21 May 2025 05:29:08 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.4 https://www.rightsofemployees.com/wp-content/uploads/2018/01/cropped-emp1-32x32.png double fine - Rightsofemployees.com https://www.rightsofemployees.com 32 32 Cheque Bounce New Rules: Jail, double fine, court fee expenses… what will be the punishment now if the check bounces? https://www.rightsofemployees.com/cheque-bounce-new-rules-jail-double-fine-court-fee-expenses-what-will-be-the-punishment-now-if-the-check-bounces/ Wed, 21 May 2025 05:29:08 +0000 https://www.rightsofemployees.com/?p=44192 Cheque Bounce New Rules: Taking the problems related to check bounce seriously, the government has made major changes in the Negotiable Instruments Act, 1881, which have come into effect from April 1, 2025. The purpose of these changes is to prevent fraud, make the payment system transparent and resolve complaints quickly. Let us know what […]

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]]> Cheque Bounce New Rules: Taking the problems related to check bounce seriously, the government has made major changes in the Negotiable Instruments Act, 1881, which have come into effect from April 1, 2025. The purpose of these changes is to prevent fraud, make the payment system transparent and resolve complaints quickly.

Let us know what major changes have been made in the cheque bounce rules and what impact they will have on consumers.

What changes have been made in the cheque bounce rules?

Now if someone intentionally bounces a cheque, he will get a harsher punishment than before. In such cases, the culprit can now be jailed for up to two years and fined up to twice the amount of the cheque. Apart from this, the hearing of cheque bounce cases going on in the court will also be faster than before. The Madras High Court has issued special instructions to make this process easier and faster.

Earlier there was a time limit of one month to file a complaint, now it has been increased to three months. This will give more time to the complainant to present his case.

Check bounce complaints can be made online

Now complaints related to cheque bounce can be made online and digital evidence has also been recognized. This will make it easier to lodge a complaint. Now a similar process has been implemented for all banks. This means that no matter which bank the cheque bounce case is related to, action will be taken in the same manner.

Banks will now inform both the account holder and the cheque recipient via SMS and email within 24 hours if the cheque bounces. Also, the reason why the cheque bounced will be clearly stated.

If the check bounces three times then the account may be frozen

If a person’s cheque bounces three times in a row, the bank can temporarily freeze that account. This step has been taken to maintain discipline in the payment system.

What to do to avoid cheque bouncing?

  1. Keep sufficient balance in the account so that the cheque does not bounce.
  2. Fill in the date and recipient’s name correctly on the check.
  3. Use good quality ink (Black or Blue).
  4. Do not use torn or damaged cheques.
  5. Draw two lines on the cheque to make it “Account Payee”.
  6. Keep checking the bank statement from time to time.
  7. If due to any reason there may be a delay in payment of the cheque, then inform the other person in advance.

What is the legal punishment for check bouncing?

Under Section 138 of the Negotiable Instruments Act, 1881, bouncing a cheque is a crime. Under this, the punishment can be imprisonment up to two years, fine up to double the amount of the cheque, court fees and legal expenses. Apart from this, banks can also charge a fine of ₹ 100 to ₹ 750.

 

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