Know What Will Happen if Cheque Bounces in India

Cheques are banking products that every account holder gets as a part of their banking relationships. Usually, it’s a product that they use to make payments and also to withdraw money from their bank account. It must be remembered that the payment cheques should never bounce. Here, bouncing means dishonor of the cheque and it gets returned without getting paid. This bouncing of cheques can be a legal crime that must be stopped at any cost. It is the responsibility of every account holder to stop any such situation from occurring. That’s why cheque bounce lawyers are the only option to handle such problems.

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Prominent Reasons for Bouncing Cheques in India

Here are a few prominent reasons that often lead to the bouncing of cheques in India:

• Not availability of adequate balance in the payee’s bank account

• Insufficiency of the amount in the drawer’s account

• The account gets closed before or after the issue of the cheque

• Mistake while payment of the cheque, especially due to not matching the signature

• The amount of reimbursement/withdrawal through cheque is more than the limit set by the account holder

What can happen if Cheques get bounced in India?

Bouncing cheques or dishonoring them can be a punishable act that every account holder must know. As a matter of fact, the act of bouncing the cheque is a legal offense that can be a punishable act and that can be decided by the law of the land. Here are a few possible things that can happen when cheques bounce!

• The banks can levy a heavy penalty if the cheques bounce

• The account holder may face penalty charges

• For the payee, cheque discredit imperils monetary interests

• The drawer may face some kind of social crisis as he may face defamation due to the bouncing of the cheque.

• The payee may opt to start legal action against the account holder.

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Keeping these things in mind, every account holder in a bank must stay alert while issuing a cheque. They must try to maintain their account and try to keep it funded with the amount for which the cheque has been issued. Otherwise, they can get themselves ready to face legal actions along with the help of a lawyer in Kolkata with heavy levy charges.

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