Cheque Bounce New Rule: New rule for Cheque bounce, and money will be deducted from another account. Details Here.

Cheque Bounce New Rule: New rule for Cheque bounce, and money will be deducted from another account. Details Here.
Tags: Cheque Book

You must read this news if you use a bank cheque. The Finance Ministry is exploring several measures to deal with cheque bounce cases, such as deducting money from another account of the cheque's issuer and prohibiting the opening of new accounts in such circumstances. The ministry recently held a high-level conference in response to the rising number of cheque bounce situations, when several of these proposals were made.

 

  • Rules that are being considered. 

These cases put more pressure on the legal system. As a result, certain ideas have been made in which some actions must be taken before the legal procedure, such as deducting the amount from the issuer of the cheque to another account if not enough money is found in that account to cover it. Other recommendations, according to sources, include a cheque bounce as a loan default and submitting it to credit reporting agencies to help the person's marks be lessened. However, he stated that a legal opinion would be taken before approving these ideas.

 

  • Payers will be forced to pay the cheque.

The payer will be forced to pay the cheque if these suggestions are implemented. This will make doing business easier and end the habit of deliberately issuing cheques even when there isn't enough money in the account.

 

  • Penalty twice the value of the cheque or a jail term of up to 2 years.

For the amount to be automatically deducted from another account of the cheque issuer, the standard operating procedure (SOP) and other recommendations must be followed. Cheque bounce cases can be brought before the court, and they are punishable by a fine up to twice the amount of the cheque, up to two years in jail, or both.

 

  • Suggestion to make cheque issuers accountable.

Ph.D. Chamber of Commerce and Industry, a trade group, has asked the finance minister to take action, such as requiring a temporary block on bank withdrawals in the event of a cheque bounce, so that the check issuers can be held responsible.

 

 

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