Can we file FIR against cheque bounce?

Can we file FIR against cheque bounce?

1. Yes, you can now go for registering an FIR against the person who has given you that cheque. One is registration of FIR. iT WOULD BE UNDER 420, 406 etc of IPC.

What happens if a cheque bounces back?

If there’s not enough money, the cheque will ‘bounce’. This means your bank won’t pay out the money. Most banks will retry to pay the cheque later the same day. If your bank does this and they tell you that the first payment bounced, this is a chance to put some extra money in your account if you can afford to do so.

Do banks charge if a cheque bounces?

A bounced payment occurs when there isn’t enough money in your current account to fund a pre-arranged payment, so your bank refuses to make the payment. Banks usually charge you for each bounced payment.

How to take legal action in case of a cheque bounce?

To proceed with a legal action in case of a cheque bounce, then you should fulfill the following conditions: The bank must have received the cheque within a period not later than 3 three months after it was issued by the drawer.

What happens if you bounce a cheque twice from the bank?

In addition, the banks also have the right to close the guilty person’s account (on repeated bounce cheque offence) or stop their cheque book facility. The bank may also charge a penalty to both the drawer and the payee for the inconvenience, extra paperwork and wasting the bank’s time. Cheque Bounce Penalty by Popular Banks

What happens if cheque is dishonoured by the bank?

As per the Negotiable Instruments Act, 1881, if a cheque is dishonoured by the bank due to insufficient money in the bank account of the drawer then it is criminal offense.

Why are there so many cheque bounce cases in India?

In India, the number of pending court cases relating to cheque bounce offences is huge. A cheque is bounced if the issuer writes a bad cheque – due to technical reasons like mismatch of signature or overwriting, or also when there are insufficient funds in the account as result of it is not processed by the bank.