Cheque Bounce Notice

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Cheque Bounce notice in India.

According to the section 138 of the Act laments that any Bounce in a cheque is legally punishable.

What is a cheque Bounce notice in India

When you receive a check from the drawer and if it gets rejected and returned by the bank unpaid it is said to be bounced. The very first step to take action is to send a letter, demanding notice to the party who wrote the cheque intimidating to do proceedings, if the due amount is not paid.

Necessary requirements of a cheque Bounce notice in India

  1. A statement that you provided the check within the validity.
  2. A statement of legally enforceable liability/debt.
  3. Detailed information about the reason of dis-credit of the cheque.
  4. Notify the drawer drawer to pay the due amount.
  5. A statement that you are providing Royal the drawer a duration of 15 days. After that you will commence legal actions.

Recent Updates

9-Jun-2020: Dishonouring of cheques to be decriminalised

Yesterday, the Finance Ministry announced decriminalisation of 39 minor economic offences, as a part of the COVID-19 relief measures. Among others, such offences included dishonouring of cheques under Section 138 of the NI Act, 1881. This section earlier levied criminal liability, punishable with imprisonment up to 2 years and/or a fine up to twice the cheque amount.

Banks Opposes Ministry of Finance Proposal

21st July: Bankers are saying legal action is taken only in those cases where a borrower wilfully default on the loan. They opposed the ministry’s move to decriminalise cheque-bounce offence.

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