Home Banking What is Cheque Bouncing, Charges & Punishment?

What is Cheque Bouncing, Charges & Punishment?

cheque bounce

Do you know what is cheque bouncing?, Do you know when and why your check bounces? If you do not know, then I will tell you about it in full detail. So let’s know what this is.

What is Cheque Bouncing?

When you deduct a check from the cheque book of any of your bank accounts to make a payment to a person, then that person goes to the bank anytime within three months and puts that check in the bank to receive money. And at that time there is not enough balance in your account, then in such a situation the bank is not able to pay that person, and your check bounces. We call such a situation a cheque bounce.

According to the law, if the check gave you bounces, then it is considered a punishable offense. In such a situation, that person can file a suit against you, due to which you can be fined or even punished.

What is the reason for the cheque bounce?

  • The signature in your cheque is not correct or does not match with the signature in the bank,
  • The name of the payee is not written correctly in the check.
  • If the amount written in figures and words does not match,
  • your account number is not written correctly,
  • In case of an insufficient amount in the account to pay the cheque,
  • the date is not mentioned or in case three months have elapsed from the date mentioned,
  • If the drawer orders the bank not to pay the cheque,
  • the drawer has closed his account before the cheque is presented to the bank,
  • If a court has prevented the bank from paying the cheque,

How much does a bank charge for cheque bouncing?

By the way, the fee to be deducted in case of cheque bounce varies from bank to bank. If we talk about SBI Bank, then in respect of any check deposited in its branch, the issuing bank has returned that cheque without paying, then in such a situation, a fee of up to Rs 150 will be charged.

The cheque amount is more than Rs 1 lakh, then a fee of Rs 250 will have to be paid, in addition to this, GST will have to be paid separately, 150 rupees in case of bounce due to lack of technique. cheque bounces due to balance inadequacy, then Rs 500 plus GST will be charged on it.

If the amount of the check given by you is more, then in this you are given the freedom to pay in two installments. Additional relaxation of 30 days is also given after 60 days.

What is the punishment for a cheque-bouncing offense?

According to section 138 of the Negotiable Instruments Act, when a person’s check bounces, he can file a suit in court. But before filing suit, he is required to send notice to the accused.

The notice intends that the person receiving the check has to mention that the reason why the check has bounced should be made known to the person who has given the check and demands the amount which is written in the check. Is.

In case of cheque bounce, 15 days should be given to the payee of the cheque after sending the legal notice. It should be mentioned in that notice that the amount mentioned in the cheque should be paid within 15 days from today’s date, otherwise legal action will be taken against you.

  • If a check bounces and if the payee appeals to the court, then as interim relief to the issuer of the check as per the Negotiable Instruments Act 143A, the court orders 20 percent of the original amount to be paid to the payee. This amount has to be given to him within 60 days.
  • If the complaint of the check payee is found to be true, the court can impose a fine ranging from 20 percent to 100 percent on the issuer of the check.
  • Apart from this, if the criminal motive is proved against the accused, then he can also be punished with 2 years imprisonment.
  • If the complaint of the check payee is found to be false, the court can recover the compensation amount with interest.

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