Cheque bounce new rules: Taking seriously the problems related to the check bounce, the government has made major changes in the Negotiable Instruments Act, 1881, which have come into force since 1 April 2025. The purpose of these changes is to curb fraud, make the payment system transparent and resolve complaints quickly.
Let us know what major changes have been made in the rules of check bounce and what will be their impact on consumers.
What has changed in the rules of check bounce?
Now if someone deliberately bounces check, then he will get severe punishment beforehand. In such cases, the convict may now be fined up to two years of jail and check. Apart from this, the hearing of check bounce cases running in the court will also be faster than before. The Madras High Court has issued special instructions to make this process easier and speed up.
Earlier there was a month to file a complaint, now it has been extended to three months. This will give more time to the complainant to speak.
Complaint of check bounce can be done online
Now complaints related to check bounce can be made online and digital evidence has also been recognized. This will make more convenience in filing a complaint. The same process has now been implemented for all banks. This means that the case of check bounce may be related to any bank, action will be taken in a similar way.
The banks will now inform both the account holders and the checks through SMS and email if the check bounces. Also, the reason why the check was bounced will be clearly explained.
If the check bounced thrice, the account can be freeze
If a person’s check is bounced three times in a row, the bank can temporarily freeze that account. This step is taken to maintain discipline in the payment system.
What to do to avoid check bounce?
- Place sufficient balance in the account, so that the check does not bounce.
- Fill the date and recipient’s name correctly on the check.
- Use good quality ink (black or blue).
- Do not use torn or bad checks.
- Make two lines on the check and make it “Account Payee”.
- Keep checking the bank statement from time to time.
- If the payment of check can be delayed due to any reason, inform the front person in advance.
What is a legal punishment for check bounced?
A check bounce is a crime under Section 138 of the Negotable Instruments Act, 1881 (Negotiable Instruments Act, 1881). Under this, there can be punishment like fine of up to two years, fine of check amount of check, court fees and legal expenses. Apart from this, banks can also charge a fine of ₹ 100 to ₹ 750.
Also read: Damaged Notes Exchange: How to replace the mutilated or burn notes, what is the rule of RBI?