The Finance Ministry is really looking at a number of measures, including the deduction of funds from the other accounts of cheque issuers and a ban on the creation of new accounts in such circumstances, in order to deal with cheque bounce instances efficiently. Is. Due to the rising number of occurrences of cheque bounces, the Ministry recently hosted a high-level conference at which many such ideas were received.
What regulations are being discussed?
These situations actually make the judicial system work harder. That is why various ideas have been made in which some procedures must be performed prior to the legal process, such as taking the amount from the issuer of the cheque’s other account if there is insufficient money in his account. Other options, according to sources, include classifying the cheque bounce case as a loan default and submitting it to credit reporting agencies in order to lower the person’s credit score. Some suggestions that were taken into account include are listed below.
The payee will be compelled to pay the cheque
If these guidelines are followed, the payee will be required to pay the cheque. And no court proceedings or hearing will be required. This will also lead to dealing with customers easily and will help in stopping the practice of issuing cheques while the person is having insufficient funds in the account.
A fine of double the value of the cheque, or up to two years in jail
Before the cheque drawer may immediately withdraw the money from another account, Standard Operating Procedures (SOP) and several other issues must be reviewed. A cheque bounce case can be brought to court as it is a serious offense punishable by a fine of double the amount of the cheque and up to two years in prison, or both.
Suggestions for holding cheque issuers accountable
PHD Chamber of Commerce and Industry has urged that the Finance Ministry implement measures such as a mandatory freeze on bank withdrawals for a few days in the event of a cheque bounce so that cheque issuers can be held accountable.