Bank transactions are frequent in the modern world. The majority of individuals use chequebooks to pay for goods and services. One of the first forms of payment, it is also regarded as particularly secure. In between, news about cheque bounces is also provided. It is anticipated that the government will soon tighten the screws and alter the laws around it in light of the rising number of cases.
An expert committee has been formed.
The administration is moving quickly to implement new check bounce regulations. For this, the government established a Supreme Court expert committee that recommends relevant rules. In addition, the Finance Ministry recently conducted a high-level conference to discuss the new regulations.
Money will be deducted from another account.
When the account holder issues a cheque even though there isn't enough money in the account, the incidence of a cheque bounce comes to light. New regulations could be implemented to prevent this, allowing the Finance Ministry to take funds from the account holder's other bank accounts if there isn't enough money in the account. In addition to taking tough measures, there is a discussion of imposing a penalty through legal action.
Cannot open another account.
After the new cheque bounce restrictions go into effect, if someone's cheque bounces, he won't be able to open any more bank accounts. The government is hoping that the implementation of this rule will result in a decline in the bounce rate.
Cannot take any loan.
With the new laws regarding cheque bounces, taking out a loan may also be problematic because a cheque bounce may be considered a loan default. If this happens, the CIBIL score of the defaulter may decrease, and there may be difficulty in receiving loans in the future.