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In fact, such 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 the amount will be deducted from his other accounts.
Sources said other suggestions include treating the case of check bounce as a loan default and reporting it to credit information companies so that the marks of the individual can be reduced. He said that legal opinion would be taken before accepting these suggestions.
If these suggestions are implemented, the payer will be forced to pay the check and there will be no need to take the matter to court. This will increase the ease of doing business and will also check the practice of deliberate issuance of checks even when there is not enough money in the account.
The standard operating procedure and other suggestions have to be followed for automatic deduction of the amount from the other account of the check issuer. A case of bounce of check can be filed in the court and it is a punishable offense with fine which may extend to twice the amount of the cheque, or imprisonment up to two years, or with both.
Industry body PHD Chamber of Commerce and Industry had recently requested the finance ministry to take steps such as a mandatory moratorium on bank withdrawals for a few days in case of check bounce, so that the issuers of cheques can be made accountable.
Source: navbharattimes.indiatimes.com
: Language Inputs
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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
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