Update Your Knowledge About New Rules for Cheque Bounce in India

Cheques are the legal banking accessories that every bank issues to customers. Customers can use these cheques to make payments to various people or agencies where payment in cash is not safe. They must issue the cheques only after filling up all the necessary fields. Here, they must understand and ensure two things without committing any mistakes. First, they must not commit any mistake in the cheques that may lead to overwriting or mistakes. Making an authentic signature is very much mandatory here. Second, they must ensure that their account must have the amount for which they are issuing the cheque. 

Bouncing of a Cheque:

It is something that cannot ever happen. It is a legal offense and may lead to some legal actions that the customers need to understand. It happens mostly when the cheque gets returned from the bank unpaid due to a lack of adequate balance in the account. That’s why you need a lawyer in Kolkata to get you out of such trouble.

New Laws For Bouncing Payment Cheques in India: 

Though banks in India had some rules for such cases of bouncing of cheques. However, some new rules have also coined and have been introduced. These rules are coined by the Reserve Bank of India and that is why it is accepted and followed by all the banks in India, both public sector and private sector banks. These laws are questionable at the Supreme Court of India. 

Cheque Bounce New Law in India 2022

The New Laws for Cheque Bounce in India were put into action by The Reserve Bank of India to smoothen the banking process. It is good to figure out that these new laws are good for the banks and the customers. Here are some new rules that the RBI, the apex Bank in India came up within 2021. These are the latest rules that are standing at the moment! 

Bulk Clearing

As per the new rule, the cheques need to get cleared on any day, irrespective of the holidays or weekend closings. Previously, these cheques did not get cleared on holidays of any kind. As per the new rule, the cheques need to be cleared within 24 hours of their production in the banks. Every customer of the banks, who need to make a payment through cheques or ECS should remember to maintain the required balance in their account on or before the date of their scheduled payment. Bouncing cheques can attract some penalties. 

Positive Pay System

Authorization of cheques of any amounts above 50,000 has been established and accepted as a new practice with the help of the new PPS system. The new rule also says that payments for lesser amounts can be cleared using the automated machine system. 

These New Laws for cheque bounce case in India are essential and that is why the banks and the customers need to follow them to safeguard their interests. As a customer, you must stay alert so that you can enjoy your rights and facilities with complete authenticity!

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