Cheque Bounce Rules Changed: Check bounce rules have become strict from 1 April 2025. Now two years of imprisonment and double the fine can be imposed on check bounce. Complaint of check bounce can also be made online now. Account can also be frozen on check bounce three times in a row. Let’s know the full details..
Cheque Bounce Rules Changed: Taking the problems related to check bounce seriously, the government has made major changes in the Negotiable Instruments Act, 1881, which have come into force from April 1, 2025. The purpose of these changes is to prevent fraud, make the payment system transparent and resolve complaints quickly.
Let us know what major changes have been made in the rules of check bounce and what will be their effect on consumers.
What has changed in the rules of check bounce?
Now if someone deliberately bounces a check, he will get a stricter punishment than before. In such cases, now the culprit can be jailed for up to two years and fined up to twice the amount of the check. Apart from this, the hearing of cheque bounce cases going on in the court will also be faster than before. Madras High Court has issued special instructions to make this process easier and faster.
Earlier there was a time of one month to file a complaint, now it has been increased to three months. This will give more time to the complainant to present his case.
Complaint of cheque bounce can be made online
Now complaints related to cheque bounce can be made online and digital evidence has also been recognized. This will make it more convenient to file a complaint. Now the same process has been implemented for all banks. This means that no matter which bank the cheque bounce case is related to, action will be taken in the same way.
Banks will now inform both the account holder and the cheque recipient through SMS and email within 24 hours if the cheque bounces. Also, the reason why the cheque bounced will also be clearly stated.
If the check bounces three times, the account may be frozen
If a person’s check bounces three times in a row, the bank can temporarily freeze that account. This step has been taken to maintain discipline in the payment system.
What to do to avoid check bouncing?
- Keep sufficient balance in the account so that the check does not bounce.
- Fill the date and recipient’s name correctly on the check.
- Use good quality ink (black or blue).
- Do not use torn or damaged checks.
- Draw two lines on the check and make it “Account Payee”.
- Keep checking the bank statement from time to time.
- If there is a delay in payment of the check due to any reason, inform the other person in advance.
What is the legal punishment for check bouncing?
Under Section 138 of the Negotiable Instruments Act, 1881, check bouncing is a crime. Under this, punishment can be imprisonment up to two years, fine up to double the amount of the cheque, court fees and legal expenses. Apart from this, banks can also charge a fine of ₹100 to ₹750.
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