Soon check bounced people are going to be like this. In fact, the finance ministry is going to take several strict measures in view of the increasing cases of deliberate check bouncing. According to the information received, the Finance Ministry is considering several measures like deducting money from other accounts of check issuers and banning opening of new accounts in such cases to effectively deal with check bounce cases.
- Keeping in view the increasing cases of bounced checks, the Finance Ministry is going to take several strict measures
- The Finance Ministry is considering deducting money from other accounts of check issuers
- If the instructions are implemented, the payee will be obliged to pay the money of the check and there will be no need to take the matter to court
The ministry had recently convened a high-level meeting in view of the increasing cases of check bounces. In which many suggestions have been received regarding taking action against the account holder. In fact such cases increase the burden on the legal system. So some such suggestions are given in which some steps should be taken before the legislative process. For example, if there is not enough money in the check bearer’s account, the amount will be deducted from his other account. . Other suggestions include treating bounced check cases as loan defaults and reporting them to credit information companies so that one’s marks can be reduced, sources said.
Legal opinion will be taken first
Legal opinion will be taken before accepting these suggestions. If these instructions are implemented then the payee will be obliged to pay the check money and there will be no need to take the matter to court. This will increase ease of doing business and will also check the practice of deliberately issuing checks even when there are insufficient funds in the account. Standard operating procedure and other instructions have to be followed for automatic deduction of amount from check issuer’s other account.
A case of check bounce is a punishable offence
A case of bounced check can be filed in court and is an offense punishable with fine. This punishment can be double the check amount or imprisonment up to two years or both. Industry body PHD Chamber of Commerce and Industry recently requested the finance ministry to introduce measures like a mandatory moratorium on bank withdrawals for a few days in case of bounced cheques. So that the check issuer can be held responsible.