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HomePersonal FinanceCheque Bounce Rules: Has your Cheque bounced? So know what are your...

Cheque Bounce Rules: Has your Cheque bounced? So know what are your rights

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In India, Cheque bounce is considered a financial crime. Therefore, before cutting the cheque, definitely Cheque your bank account, otherwise you may have to face jail sentence. Also, if someone has given you a bounced cheque, then legal action can also be taken against it.


Cheque Bounce Rules: In India, Cheque bounce is considered a financial crime. Therefore, before cutting the cheque, definitely check your bank account, otherwise you may have to face jail sentence. Also, if someone has given you a bounced cheque, then legal action can also be taken against it. Know here if you deposit someone’s cheque and it bounces, then what will be your rights in such a situation.

Legal action will be taken if cheque bounces

If someone’s cheque bounces, a legal notice will be issued in his name. Then if the reply to the notice is not received within 15 days, then how can it be taken against the person under Section 138 of ‘Negotiable Instrument Act 1881’. Cheque bounce case can be registered under Section 148 of the Negotiable Instruments Act 1881.

Punishment for cheque bounce

Cheque bounce has been considered a punishable offence, hence in such a case, there is a provision of both a maximum punishment of 2 years and a fine as punishment for cheque bounce under Section 138 of the Negotiable Instruments Act, 1881. But the normal court sentences imprisonment up to 6 months or up to 1 year. Under this, a case is registered under section 138.

Penalty for cheque bounce

Cheque bounce penalty can range from ₹150 to ₹750 or ₹800. Along with this, jail up to 2 years and fine up to double the amount written in the cheque or both can be imposed. But this happens in a situation when the cheque giver does not have sufficient funds in his account and the bank dishonors the cheque.

How to appeal against cheque bounce penalty?

The crime of cheque bounce is punishable with 7 years of imprisonment, hence it is considered a bailable offence. The person does not go to jail until its final decision. If someone has been punished for this, then he can present his application before the trial court under Section 389(3) of the Criminal Procedure Code.

Pravesh Maurya
Pravesh Maurya
Pravesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @ businessleaguein@gmail.com
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