Finance Ministry’s rule for Cheque bounce: To deal effectively with the cases of Cheque bounce, the central government may soon bring a new rule, for which many suggestions have been received. Industry body Ph.D. Chamber of Commerce and Industry had recently requested the Finance Ministry to take steps like a mandatory moratorium on the withdrawal of money from the bank for a few days in the event that a Cheque bounces, allowing the Cheque’s issuers to be held responsible.
Money will be deducted from other accounts in case of a Cheque Bounce
If the new rule is implemented by the finance ministry, the money will be deducted from the Cheque issuer’s other account. Additionally, opening new accounts may be prohibited. The Finance Ministry is contemplating several such steps. The ministry recently held a high-level meeting in response to the rising number of Cheque bounce situations, during which several of these ideas were made.
Why is the government going to take this big step?
Actually, checking bounce cases increase the burden on the legal system. As a result, some of these recommendations have been made, in which some actions must be completed prior to the legal process. For example, if there is not enough money in the Cheque issuer’s account, deduct the amount from his other account.
Can credit scores also be affected?
Sources said other suggestions include treating Cheque bounce cases as loan defaults and reporting them to credit information companies. After this, the credit score of the Cheque issuer can be reduced. Sources said that legal opinion would be taken before accepting these suggestions.
These big benefits will come from the new rule
If these suggestions received by the Finance Ministry are implemented, then the payer will be forced to give the cheque. With this, there will be no need to take the matter to the court. This will facilitate ease of doing business and will stop the practice of issuing cheques even when there is not enough money in the account.
To automatically deduct the amount from the Cheque issuer’s other account, the standard operating procedure and other recommendations must be followed. A case of bounced Cheque can be filed in court and is an offense punishable with a fine which may extend to twice the amount of the cheque or with imprisonment of either description for a term that may extend to two years, or with both.
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