• Major amendments to be introduced in cheque bounce laws from 2017

    December 30, 2016

    Considering the rise in the number of cheque bounce cases Centre has decided to make stricter rules in this regard and introduce certain necessary amendments. The Union is trying to get the new amendments in force by 2017.

    The government shall introduce the new amendments when the Parliament sits for the budget session, which is likely to start in the last week of January, 2017.

    One of the major amendments to be introduced is, making cheque bounce a non-bailable offence. Presently, cheque bounce is a bailable offence hence the defaulters easily escape imprisonment as long as the trial is pending in court. The law lays down an imprisonment of up to two years or fine that may extend up to double the dishonoured amount, or both.

    The Trader’s Association had reportedly put in an appeal with the Finance Ministry to take necessary steps in this regard and lay down stringent punishment for cases related to dishonoured cheques. The measures were suggested to be adopted as part of its steps to normalise business post demonetisation. Another major amendment to be introduced would be imprisonment of the issuer of the cheque within a month of its bouncing.


    The introduction of stricter punitive measures in cheque bounce cases shall definitely act as a deterrent and help in reducing the number of cheque bounce cases that happen every year. These amendments should be approved by the Parliament within a short time so that they are enforced as soon as possible.

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