How to avoid check bounce: everything you need to know about check bounce!

Check bounce is considered a criminal act under certain circumstances. In this, a provision has been made for punishment under the Negotiable Instruments Act of 1881. We are going to give complete information about it in this article.

How to avoid check bounce: everything you need to know about check bounce!
How to avoid check bounce: image source: freepick

In today's time, the trend of online payment has increased a lot. A large number of people prefer to pay online, but still a large number of people use cheques. If you are also involved in such people, then you should know all the rules related to the check. Otherwise, if the check bounces, in some special circumstances, along with paying the fine, you may also have to go to jail. 

When does a check bounce?

There can be many reasons for a bounced check issued on behalf of a person Low balance in the check issuer's account, check deposited in the bank account and signature on the check not found, account number written on the check is not correct and many times mutilated checks are also not cleared by the bank goes.

What happens after a check bounces?

In case of check bounce, the first penalty imposed by the bank is on the issuer of the cheque. However, the amount of penalty depends on the reason for the check bouncing and the bank. 

If the check bounces due to low balance in the account of this issuer, then it will be included in the criminal category. Under the Negotiable Instruments Act, 1881, the person can be prosecuted and the drawer of the check can be imprisoned for up to two years.

Keep these things in mind before issuing a check:-

• Always issue account payee cheques.

• The signature on the check must be registered with the bank.

• You must have sufficient balance in your account. 

• Fill in the information on the check carefully.