North India Statesman
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News India Live, Digital Desk: Have you given someone a check or someone and ever Check bounce Are you struggling with the problem? If yes, this news is very important for you! Check bounced in India is a very serious financial crime, often causing heavy losses to people and such cases are also reported in the courts. But now the government is going to take very strict steps about this.
Why is strictness increasing?
In fact, the number of check bounce cases in India has increased so much that they have a heavy burden on the courts. This is not only increasing the burden on the courts, but the trust in business transactions is also decreasing. People feel that if someone gave the check and it is bounced, it takes years to recover it. To solve this problem, the Union Finance Ministry has now prepared some big and stringent proposals.
What will be new and tough rules?
These new proposals being considered by the Finance Ministry aims to take quick action in cases of check bounce and punish the culprits immediately, so that such cases are reduced and people’s confidence in financial transactions. Know what can happen:
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Money will be deducted directly from your account: The most important proposal is that if your check bounces, the bank will be given the right to deduct money directly from your second bank account. That is, if you have enough money in any other account, then the amount of the bounced check will automatically deducted from there. This would be a major relief for the creditor (who had to get money).
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Bank account freeze and ban on opening new account: Not only this, the bank account of the bounce check can also be freeze. This means that you will not be able to do any transaction from that account. Not only this, you will not get permission to open a new bank account until you pay the outstanding amount. This will be a huge ban.
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Information will be shared: Information of check bouncers will be shared between banks and financial institutions. That is, if you bounce checks in one bank, then other banks and financial institutions will also be aware of this, so that you may have difficulty in taking loans or taking advantage of other financial services.
What is currently punishment?
At present, under the Negotiable Instrument Act on the check bounced, there is a double fines of a jail or check amount of up to 2 years, or a provision of both. But these cases take a lot of time to reach the court and settle them.
What is the motive?
The aim of these new rules is to speed up the court process and punish such criminals immediately, so that people become more responsible while giving checks. This is good news for those who have to face financial losses due to bounce check.
In short, if you are giving a check to someone, make sure that there is enough balance in your account, because now the check bounced can prove to be very expensive and difficult for you!
