On Thursday, the ‘Banking Offenses and Punishment Act, 2064’ was presented by Committee President Santosh Chalise.

“In the past, there were discussions in Parliament regarding the issue of ‘cheque bounce.’ According to Committee President Chalise, the committee has passed a bill addressing this issue.

What are the penalties and punishments for issuing or causing a bounced cheque?

Before the Amendment

According to Article 3 of the Banking Offenses and Punishment Act 2064, ‘You should not issue a cheque if your account does not have sufficient funds.’ However, the law does not specifically mention the penalties for a bounced cheque.

According to Article 15 of the Penalties and Punishments Act, any offense under Section 3 shall be subject to a fine and imprisonment for up to 3 months. Additional penalties may also apply for the offense.

Present Amendment

In the article 15, penalty and punishment provision amended as:

Article-15 Penalty and punishment,

       Under Sub-Article-1

        Under Sub-Article A1.

Sub-Article 1a, sub-article 3 under sub-article 5.

Penalties and Punishment of Cheque Bounce: New Law

For a bounced cheque amounting to between 15 lakhs and 50 lakhs, the penalties include a fine of 5% of the total amount and imprisonment for a period of 1 to 3 months.

For a bounced cheque amounting to between 50 lakhs and 1 crore, the penalties include a fine of 5% of the total amount and imprisonment for a period of 3 months to 1 year.

For a bounced cheque amounting to between 1 crore and 10 crores, the penalties include a fine of 5% of the total amount and imprisonment for a period of 2 to 4 years

This provision is mentioned in the bill, as stated by Committee President Chalise.