Are you aware that major amendments have been approved in the rules pertaining to check bounce in 2025? The Negotiable Instruments Act has been amended directly by the Government of India bringing in new guidelines regarding check bounce cases. These changes would be effective from April 1, 2025 and are aimed at reducing fraud and making transacting more transparent. Let us know in detail how these new rules will become applicable to you.
Provision Of New Punishment On Check Bounce
In accordance with the new rules, a person, who purposely causes a check to get bounced, may now be imprisoned for a period of two years or be subject to payment of a fine double the check amount. This punishment was previously for only one year. Now, it has been increased. However, there is still provision regarding the relief in case of between a technical glitch or bank error.
New Complaints Procedure Of Check Bounce
Complaint about check bounce can now be lodged online. You need to get the check return memo within 30 days from the bank and share it with the court or police. Under the new rules, there are 3 months from the date on which the check is drawn to complaint being filed, whereas previously this time was 1 month.
New Responsibilities Of Banks
It is now going to be compulsory for banks to send SMS and email alerts within 24 hours to the account holder and the check recipient, after the cheque bounces. Moreover, the bank will have to give the recipient a very detailed reason as to why the cheque bounced to avoid misunderstanding.
Things To Keep In Mind While Writing A Check
- Put the right date on the check and never write a check that is already torn.
- Write a check only after confirming sufficient balance is available in the bank account.
- Ensure to cross (parallel two lines) on the check so that it can’t be directly encashed.
- While writing a check, enter the amount clearly using both numbers and words.
Ways To Avoid Check Bounce
If you want to avoid the problem of check bounce, then use digital payment modes such as UPI, NEFT, or RTGS. But remember, always check your bank balance before using the check. If, however, you feel that your cheque might bounce, inform the receiver beforehand and arrange for alternate payments.
Conclusion
In case the cheque given by you bounces, immediately contact the payee and clarify the reason. Try to clear the payment within 15 days so that you would not have to face any legal action. In case a case has wrongly been filed against you, do not forget to seek legal counsel.
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