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Check Bounce Rules in India 

 

Checks are used in almost all transactions such as repayment of loans, payment of salaries, bills, fees, etc. A lot of checks are processed and cleared by banks on a daily basis. For the purpose of obtaining proof of payment, checks are given. If you have been given a check by someone and you deposit it in the bank to cash it, then it is important that the issuer of the check has at least as much money as the check he has issued. If there is not enough money in his account, the bank dishonor a check. This is called check bounce. When the check bounces, a slip is also given from the bank. The reason for the check bounce is written in this slip.

As a result of a check bounce case in India, a check bounce case under section 138 (1) of the Negotiable Instruments Act, 1881, makes a person liable for a check bounce case.

If the drawer pays the check amount within 15 days from the date of receipt of the notice, the drawer commits no offense. If the issuer of the check refuses to give the money or does not respond to the legal notice, the judicial magistrate can proceed to file a complaint in the court.

A criminal case can also be filed

In case of check bounce, you can also make a criminal case under Section 420 of the Indian Penal Code i.e. For this, it has to be proved that the issuer of the check was intended to be dishonest. For this, the accused can face both 7 years in jail and fine.

Bounced when

1. If there is no money in the bank account of the issuer of the check.

2. If there is less money in the check issuer's bank account than the amount written in the check.

3. The issuer of the check has not corrected the signature.

Documents required:

The following documents are required before a check bounce case can be filed:

1) Original Check and Return Memo

2) Copy of information and original postal receipts.

3) Evidence affidavit.

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