Check Bounce Rules: Take these steps immediately as soon as the check bounces, otherwise your money will be lost...


If someone has given you a check and you deposit it in the bank to get it cashed, then it is important that the check issuer has at least as much money in his account as the check issued by him. If there is not enough money in his account then the bank dishonors the cheque. This is called check bounce. When a check bounces, a slip is also given by the bank. The reason for the check bounce is written on this slip.


If a check bounces, the first thing to do is to send a legal notice to the person issuing the check within a month. In this notice, it is said that the check given by him has bounced and now he should give the amount of the check to him within 15 days. After this, one has to wait for 15 days. If the person giving the check pays the money within 15 days, then the matter gets resolved here.

File a case in civil court-
If the check issuer refuses to pay the money or does not respond to the legal notice, you can file a case in the civil court under Section 138 of the Negotiable Instruments Act 1881. Under this, the accused can be punished with both imprisonment of 2 years and a fine. The amount of the fine can be double the amount of the cheque.

After filing the case, you can appeal to the court to get some part of the check amount from the check issuer in the beginning itself. After this, the court usually gives 20 to 30 percent of the check amount initially.

If you win, the court gets the money from the check issuer and the amount you got initially also remains with you. If you lose the case, the money you received at the beginning of the case has to be returned with interest.

Criminal cases can also be filed-
In case of a check bounce, you can also file a criminal case under section 420 of the Indian Penal Code i.e. IPC. For this, it has to be proved that the person issuing the check had the intention of being dishonest. For this, the accused can face both 7 years of jail and a fine.

Who can issue a cheque?
Let us tell you that a check can be issued by an individual as well as a company. Apart from this, other institutions including trusts and societies can also issue cheques. Along with this, let us also tell you that any check is valid only for 3 months from the date of issue.


When does a check bounce?

1. If there is no money in the bank account of the person issuing the cheque.

2. If the check issuer has less money in his bank account than the amount written in the cheque.

3. The issuer of the check has not corrected the signature.

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