Due to the increasing cases of check bounce, the pressure on the legal system is increasing. In view of this, the government has decided to take strict steps.
If you use a check to pay someone, then you need to be careful, otherwise you can get into some big trouble. Because the government is going to make a big change in the rules of check bounce. Let us tell you that due to the increasing cases of check bounce, the pressure on the legal system is increasing. In view of this, the government has decided to take strict steps. To deal effectively with the cases of check bounce, the central government may soon bring a new rule, for which many suggestions have been received.
Industry body PHD Chamber of Commerce and Industry had recently requested the Finance Ministry to take steps such as mandatory moratorium on withdrawal of money from the bank for a few days in case of check bounce, so that the issuers of cheques can be made accountable. If the new rule is implemented by the Finance Ministry, then money will be deducted from the other account of the check issuer. Along with this, opening of new accounts in other banks can also be banned. The Finance Ministry is considering several such steps.
credit score can be low
In fact, check bounce cases increase the burden on the legal system. Therefore, some such suggestions have been given, in which some steps have to be taken before the legal process. For example, if there is not enough money in the account of the issuer of the check, then deducting the amount from his other account. According to sources, other suggestions include treating the case of check bounce as a loan default and reporting it to credit information companies. After this the credit score of the check issuer can be reduced. Legal opinion will 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 pay the cheque. With this, there will be no need to take the matter to the court. This will increase the ease of doing business and will also stop the practice of issuing checks even if there is not enough money in the account. Standard Operating Procedure and other suggestions have to be followed to automatically deduct the amount from the other account of the check issuer. A case of bounced check can be filed in the court and is a punishable offense with a fine which may extend to twice the amount of the check or with imprisonment of either description for a term which may extend to two years, or with both.
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