Thus, ensure you always maintain the minimum average balance and avoid any irregular or unusual bank transactions. Recurring cheque bounces can affect your financial credit history which can make it difficult for you to avail loans in future.
If a cheque is bounced citing insufficient funds in bank account, it is a criminal offence and the payee - the person or the bank - can file a complaint under Section of the Negotiable Instruments Act. The holder is given a chance to resubmit the cheque to the bank within a period of three months of the date mentioned on it.
The aggrieved party can also legally prosecute the defaulter by sending a legal notice within 30 days of receiving the cheque return memo.
Mentioning all important facts pertaining to the case in the notice is vital. This includes nature of the transaction, amount, date of depositing the cheque and when it was dishonoured by the bank. If the cheque issuer or drawer fails to make a fresh payment within a month of receiving the notice, the holder has the right to file a criminal complaint against him. However, if the aggrieved party fails to file the complaint within 30 days, the court will not entertain the suit unless the delay is justified with a valid reason.
If the drawer is found guilty as a wilful defaulter, he will be charged with a jail term of two years or a fine which is twice the cheque amount, or both. The defaulter is also given a chance to appeal to the sessions court within a month of the date of judgment of the lower court.
This situation may arise if you pay the cash into your account via a bank other than your own. As your cash deposit is typically accompanied by a paying-in slip, this piece of paper has to be turned into to a digital payment message that goes through the Image Clearing System, which means the deposit will get to your bank and into your account by Cheques and Cheque Clearing.
What advice would you offer to anyone who is inconvenienced by the time taken to access cheque funds? What should I do if I am not satisfied with the service offered by my bank?
How many cheques bounce? Why do cheques bounce? Is it true that cheques are only valid for six months? Am I still able to stop a cheque now that cheques are cleared via the image-based system? What is special presentation or special clearance? Now that cheques are cleared through the image—based system will I still be able to get my cheque specially presented?
Can a cheque be paid into the account of someone other than the named recipient? I have been asked to issue a duplicate cheque.
What should I do? I paid cash in to my account, but the cheque I wrote still bounced. The original video Euro and currency clearings The law relating to cheques Glossary Newsletters Stay up to date with Pay.
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