Pay special attention to these things while paying through cheque, otherwise there will be a huge loss

Check Bounce Rule: If you use a check to pay someone, then it is very important to take care of many things. Otherwise, you may have to pay a heavy fine if the check bounces. Along with this, you may also have to go to jail. Because check bounce Being is considered a legal offense in the language of the court. In this, a provision has been made for punishment along with fine under the Negotiable Instruments Act of 1881.

Explain that when a bank rejects a check for some reason and the payment is not made, then it is considered a check bounce. The reason for this happening is due to lack of balance in most of the accounts. Apart from this, even if there is a difference in the person’s signature, the bank rejects the cheque. Due to which you may have to face many problems.

reason for tech bounce

• Insufficient funds in the payee’s bank account.
• Signature not identical.
• Non-match of account number.
• Issue with the date of the cheque.
• Non-uniformity of amount in words and figures.
• Mutilated cheque.
• Exceeding the overdraft limit.

When the check bounces, the person giving the check has to inform about it. After which he has to pay you within 1 month. In case of failure to do so, a legal notice is sent to the person and even after that, if no response is received for 15 days, a case is registered against him under Section 138 of the Negotiable Instrument Act, 1881. Under the Negotiable Instruments Act, 1881, the person can be prosecuted and the check drawer can be punished for up to two years.

Duration is only 3 months

Cheques, bank drafts are currently valid for 3 months from their issue. It is common banking practice to dishonor a check older than 3 months. This practice is for the safety of the person who has written the cheque, as there is a possibility that the payment may have been made through some other means or the check may have been lost or stolen.

Take special care of these things

• Whenever you give a check to someone, make sure that you have money in your account.
• Apart from this, the person taking the check should get it cashed within three months.
• Whenever you pay someone by cheque, avoid giving more space between words and figures regarding name and amount.
• Whenever you sign a bank cheque, remember that you have to sign in the same way as it is already recorded in the records of the concerned bank branch.
• Whenever you pay someone through a bank cheque, make sure to note down the details of the check like check number, account name, amount and date.
• Always issue account payee cheques.
• The signature on the check should be registered with the bank.
• Fill in the information on the check carefully and correctly.

English News Headline : Check Bounce Rule Time Limit and Penalty all Details in Hindi.