Government preparing to take effective break to curb check bounce cases

In the past, there has been an increase in the cases of check bounce in the business. Many merchants started using this method for fraud. Due to this, the government has even made a provision for punishment for this and now the government seems to be getting very serious on this issue. It is anticipated that in the coming days, a person may have to go through many troubles if the check bounces. The government is preparing to implement rules to deal with such cases.

If sources are to be believed, in order to prevent and effectively deal with the cases of check bounce, the Finance Ministry is considering a number of steps like deducting money from other accounts of the check issuer and prohibiting opening of new accounts in such cases. 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 is the rule?

Let us tell you that it has been seen that due to check bounce cases, the burden on the legal system increases. In such a situation, some such 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 check, then the amount will be deducted from his other accounts. Other suggestions include treating the case of check bounce as a loan default and reporting it to credit information companies so that the individual’s score can be reduced. He said that legal opinion would be taken before accepting these suggestions.

If the check is given, the money will have to be given

If these suggestions are implemented, the payer 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 check the practice of deliberate issuance of checks even when there is not enough money in the account.

Check bounce is a punishable offense

It is worth noting that industry body PHD Chamber of Commerce and Industry had recently requested the Finance Ministry to take steps like mandatory moratorium on withdrawal of money from the bank for a few days in case of check bounce, so that the issuers of checks can be made accountable. Can you At present, check bounce is a punishable offence. The case may be filed in court and shall be punishable with a fine of twice the amount of the cheque, or imprisonment for a term which may extend to two years, or with both.