News India Live, Digital Desk: The bank issues passbooks and checkbooks with accounts to customers, which are used for transactions and payments. However, it is very important to take care of some special things while paying from the check, otherwise you may get caught in legal difficulties.
What is a check bounce?
When the bank does not accept your check for some reason, it is called a check bounce. It is usually caused by insufficient balance in the account, disturbances in signature, overwriting, or not matching the amount in digits and words.
Bank imposes a fine
If your check bounces, the bank can impose penalty on you for this. This penalty amount is directly deducted from your account. The bank also informs you when the check bounces, the receipt of which you receive.
When is the legal notice sent?
After the check bounced, you have to return the amount mentioned on the check within a month to the person concerned. If you do not do this, that person can send you a legal notice. It is necessary to answer the legal notice within 15 days. If the notice is not responded, a case can be filed against you under Section 138 of Negotiable Instrument Act 1881.
Punishment and fine for check bounce
Check bounce is a legal offense. If found guilty under Section 138 of Negotiable Instrument Act 1881, you may have to face two years of jail or fine, or both. Apart from this, you may have to pay interest along the amount marked on the check.
Validity of check
Keep in mind that the validity of any check is only for three months. The bank then does not accept it and declares it invalid. Therefore, always submit it to the bank within the validity period of the check.
Important rules related to check:
- Always keep sufficient amount in the account.
- Clean and clarify the signature.
- Avoid any type of overwriting.
- Write the zodiac clearly in both words and numerals.
By adopting these precautions, you can avoid the check bounce and the legal mess related to it.
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