Check Bounce Rule: The Finance Ministry is considering a number of measures to deal with cheque bounce cases better, including taking money from the issuer’s other accounts and forbidding the opening of new accounts in such circumstances.
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. In fact, these situations put more pressure on the legal system. Therefore, some of these ideas have been made, in which some actions have to be taken before the legal procedure, such as taking the amount from the cheque issuer’s other accounts if there isn’t enough money in his account to cover it.
Ease of doing business
Other recommendations, according to the PTI-language study, include considering a cheque bounce as a loan default and submitting it to credit reporting agencies to help the person’s marks be lessened. It will be sought a legal opinion before these ideas are approved. The payer will be compelled to pay the cheque if these recommendations are put into practice, negating the need to file a lawsuit. This will make doing business easier and put an end to the habit of purposefully writing cheques even when there isn’t enough money in the account.
Case can be filed in court
To self-deduct, the amount from the other account of the cheque issuer, standard operating procedure, and other recommendations must be followed. A case of a bounced cheque may be brought before the court, and it is an offense that is punishable by a fine that can reach twice the value of the cheque, up to two years in prison, or both.
The business organization PHD Chamber of Commerce and Industry recently asked the Finance Ministry to take action, such as enforcing a required freeze on cash withdrawals from banks in the event of cheque bounces for a short period of time, so that cheque issuers can be held accountable.