To take any kind of loan, the Cheque is often deposited and in case of non-payment of EMI, the bank takes money with the help of that Cheque , but what if the Cheque also bounces, in this case the bank will recover the money from you in this way.
The government has made complete preparations with the RBI and can implement the new system soon. Recovery of money from another account simply means that the Cheque holder will have to pay the money in any case. Also there can be punishment.
Loan default rules will apply
It has been said in the report of CNBC that after this process is developed, the credit score of the company or person with Cheque bounce will also deteriorate. Apart from this, the rules of loan default will also be applicable for these cases. This will reduce the cases of Cheque bounce and people will back away from bouncing the Cheque themselves.
Rules discussed in the meeting
The RBI and the government have held a meeting last week regarding this rule. Regarding this rule, it was said that due to its arrival, no new account will be opened even if the Cheque bounces. Along with this, money will also be recovered from another account.
How many years of punishment in Cheque bounce
In the case of Cheque bounce, there is a provision of punishment of 2 years and it can be changed in the coming times. According to PTI, a Supreme Court panel had also suggested some changes in the Negotiable Instruments Act, 1881. Explain that under the Negotiable Instruments Act, 1881 (NI Act), there is a provision of punishment for Cheque bounce.
