Nowadays it is the era of digital transactions. Transferring money from home has become easy through platforms like UPI, Google Pay and PhonePe. But despite this, many people Check It is considered safer to use. However, one must be very careful while making check transactions, as a small mistake can cause your check to bounce, causing you to face legal and financial problems.
In this article we will discuss all the important rules, penalties, and legal consequences related to check bounce.
What is check bounce?
When a bank does not accept your check and refuses to pay it, it is called check bounce They say. There can be many reasons behind this, but the most common reason is lack of sufficient funds in the account. Apart from this, wrong signature, expiry of check validity, or wrong filling of check can also be the reasons for this.
When a check bounces, the person issuing the check is informed about it. If the check holder is not paid within a month, he can send a legal notice.
due to check bounce
There can be many reasons behind check bounce:
- Lack of sufficient funds in account: This is the most common reason for check bounce.
- wrong signature: If the signature on the check does not match the signature in the bank records.
- expiry of check: Generally a check is no longer valid after three months of its issue.
- check filled out incorrectly: Like discrepancy in amount or incomplete information.
- dishonored check: The bank may reject the check due to some technical glitch.
Penalty on check bounce
When a check bounces, the person Penalty Have to pay. This penalty may vary from bank to bank.
- general penalty: ₹350 to ₹750.
- Repeated check bounce: The penalty amount may be increased.
- On variation of signature:A penalty of approximately ₹50 may be imposed.
pay attention: If the check bounces more than once in a month, additional charges may be levied by the bank.
Legal Consequences: Punishment and fine in check bounce case
check bounce in india Section 138 of the Indian Penal Code (IPC) It is considered a punishable offense under. Under this, the check holder has full right to take legal action.
Provisions of Section 138:
- jail sentence:max two years imprisonment Might be possible.
- Fine: A fine may be imposed in excess of the check amount.
- Notice and payment time,
- In case of bounce of cheque, the holder of the check must pay the amount to the person who issued the cheque. legal notice would send.
- After receiving the notice, the drawer of the check 15 days Payment has to be made within.
If payment is not made, the check holder can file a case in court.
How to avoid check bounce?
- keep sufficient funds in the account: Make sure there is enough money in the account before issuing the cheque.
- sign correctly: Sign matching the sample signature given in the bank.
- check validity of check: Make sure that the date and other details of the check are correct.
- avoid mistakes: There should not be any error while filling the cheque.
What to do if a check bounces?
If your check has bounced, take the following steps:
- Get instant information: Know the reason for check bounce from your bank.
- resolve the issue: If possible, make payment to the check holder immediately.
- Respond to legal notice: If the check holder sends a notice, reply to it in time.
