Bank cheque bounce update: How much time do you get to make payment if the cheque bounces, know the rules

News - (cheque bounce). You must have heard that after a cheque bounces, strict action is taken against the cheque giver. Let us tell you that this action is not taken as soon as the cheque bounces, the cheque debtor also gets a chance and time. 

In such a situation, it is most important to know how much time the cheque giver gets to pay the amount after the cheque bounces. What is the rule regarding this, let us know in this news.

These are the reasons due to which a cheque bounces -

A cheque bounce case mainly occurs when the payment made through the cheque is not in the bank account, i.e., the cheque bounces when the amount in the account is less than the amount required. 

In such a case, the cheque bounces instead of getting cleared. Signature mismatch, overwriting are also reasons for a cheque bounce. 

Action is taken on the receipt of the bank-

When a cheque bounces, the bank gives a receipt to the cheque creditor, which also mentions the reason for its bouncing (cheque bounce news). All further action is taken on the basis of this receipt. 

On the basis of this receipt, the cheque creditor sends a notice (notice on cheque bounce) to the person from whom he had taken the cheque and informs him about the cheque bounce. 

This much time is given to pay the amount-

After the initial notice, the money has to be paid to the cheque creditor within 1 month. If this is not done, the cheque creditor can send a legal notice (legal notice on cheque bounce). 

Ignoring the legal notice will cost heavily-

When a legal notice is received by the cheque debtor, he gets another 15 days to pay the amount. Not responding to this notice can cost him dearly. After this, a case is bound to be registered against him. 

Further action is taken if a case is registered under section 138 (cheque bounce punishment act) of the Negotiable Instruments Act 1881. 

There is a provision for 2 years imprisonment - 

In case of cheque bounce (cheque using tips), a case is registered under section 138. In this, punishment of up to two years and fine (cheque bounce punishment) can be given. In law, cheque bounce is counted in the category of punishable offence.

Case is filed at local level

There is provision for both fine and punishment in case of cheque bounce. The court can order both and can also pronounce either punishment or fine. The cheque debtor may also have to pay interest on the cheque amount. It all depends on the court's decision. A cheque bounce case is registered at the local level.

You may also have to pay bank penalty-

In case of cheque bounce, banks also levy penalty charges on the cheque payer. Banks automatically deduct this amount from the cheque payer's account. 

There is also a limit on cheque clearance. The cheque should be cashed within three months because the validity of the cheque is only for three months.