Personal Finance

Cheque Bounce Rule: Keep these things in mind while making payment by cheque

October 18, 2024

Cheque Rules: Why are we asked to sign on the back of the cheque, what will happen if we don't sign? know rules here

Cheque Bounce Rule: In today’s time, if you have to make payment to someone, then very few people make payment by cash and when it comes to a large amount, then people use online medium more.

Cheque Bounce Rule: Payment is done easily through this and nowadays there are many UPI apps as well, but it cannot be denied that people also use cheques to make payment. Not only this, many times people make advance payment by cheque. In such a situation, if you also make payment by cheque, then it becomes important for you to know what things you have to keep in mind. This is because if your cheque bounces, then you can get into trouble. So let’s know what rules you have to know before making payment by cheque.

What is the rule of cheque bounce?

If you make payment to someone by cheque and it bounces due to any reason, then a fine is deducted from your bank account. At the same time, you have to pay the person who is to receive the payment within a month. If you do not do this, you may get into trouble.

If the cheque has bounced and for some reason you are unable to make the payment even in a month, then a legal notice can be issued against you. You have to reply to this within 16 days. If you do not do this also, then a case can be registered against you under section 138 of the Negotiable Instrument Act 1881.

Also Read- EPFO Pension Rules: How much pension will you get before 58 years of age? Know these rules related to pension

There is also a provision for punishment

Actually, if you make payment to someone by cheque and it bounces and even after that if you do not pay the money, then in such a situation a case can be registered against you or you can be jailed for two years. There is a provision for this in the law. So avoid making such a mistake.

Keep these things in mind:-

Whenever you make payment to someone by cheque, keep a record of it with you
Give the cheque of the same date on which there is money in your bank account
Never give a cheque to anyone just by signing it, fill in the amount and other information yourself etc.

{{post_title}}

Cheque Bounce Rule: Keep these things in mind while making payment by cheque