Cheque Bounce Charges: Penalties & Consequences

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FAQ's on Cheque Bounce Charges

What is the penalty for a cheque bounce in India?

By Section 138 of the, dishonouring a cheque is a criminal offence that is punished by up to two years in prison, a fine, or both. The drawer should be allowed to immediately return the amount of the cheque if the recipient decides to relocate legitimately.

What is the time limit or deadline for a cheque bounce case?

Due to a shortage of finances, the cheque should be paid. After a cheque bounces, the report must be returned within 30 days. Legal action against the drawer may be employed against them within 30 days if they chose not to make the returns and payments within 15 days of receiving the news that the cheque had bounced.

How many times can a cheque bounce?

The number of times a cheque may be presented to the bank many times during its validity period is unrestricted, according to the supreme court of India.

How should a case of a bounced cheque be handled?

For failing to pay the amount on the cheque, the court has the right to sue the drawer. When a civil lawsuit has been launched, the payee is not allowed to send out a notice that a check has bounced. The payee may only provide legal notice to retrieve the funds.

Is a bounced cheque a criminal offence?

If a cheque is dishonoured due to insufficient money in India, the person who issued the cheque will have committed a crime. Cheque bounce offences are punishable by up to two years in prison, a fine equal to twice the value of the check, or both.

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