If you use bank cheque, then you must read this news. In fact, to effectively deal with check bounce cases, the Finance Ministry is considering several steps like deducting money from other accounts of check issuers and banning opening of new accounts in such cases.
If you use Bank Cheque, then you must read this news. In fact, to effectively deal with check bounce cases, the Finance Ministry is considering several steps like deducting money from other accounts of check issuers and banning opening of new accounts in such cases. Is. In view of the increasing cases of check bounce, the Ministry had recently convened a high-level meeting, in which many such suggestions have been received.
What rules are being discussed
In fact, such cases increase the burden on the legal system. That’s why some suggestions have been given in which some steps have to be taken before the legal process, for example, if there is not enough money in the account of the issuer of the cheque, then deducting the amount from his other account. Sources said that other suggestions include treating the check bounce case as a loan default and reporting it to credit information companies so that the person’s score can be reduced. He said that legal opinion will be taken before accepting these suggestions.
Payee will be forced to pay the check
If these suggestions are implemented, the payee will be forced to pay the check and there will be no need to take the matter to court. This will increase the ease of doing business and will also stop the practice of knowingly issuing checks despite not having enough money in the account.
Fine twice the check amount or imprisonment of up to 2 years
Standard Operating Procedure (SOP) and other suggestions have to be seen for auto debit of amount from other account of the check drawer. A case of check bounce can be filed in the court and it is a punishable offense with a fine of twice the amount of the check or a jail term of up to 2 years or both.
Suggestions to make check issuers accountable
Industry body PHD Chamber of Commerce and Industry had recently requested the Finance Ministry to take steps like mandatory moratorium on bank withdrawals for a few days in case of check bounce, so that check issuers can be held accountable.
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