New rules for bounced cheques matter in online banking era

Here is all you need to know about the proposed changes in the Negotiable Instruments Act on cheque bouncing. Cheques, particularly post-dated ones, will gain more credibility in the world of business once the new law comes into force


After being passed by the Lok Sabha, the Negotiable Instruments (Amendment) Bill, 2017, is a step closer to becoming law. In the age of netbanking, businesses across India use cheques, including post-dated ones, to make and receive payments from vendors, suppliers and customers. In some cases, such cheques bounce and the matter ends up in court.
It is easy for the drawer of a dishonoured cheque to file an appeal and obtain a stay on court proceedings. This reduces the credibility of cheques in the world of business.
Here is all you need to know about the proposed changes in the Negotiable Instruments Act on cheque bouncing.
1. The Negotiable Instruments (Amendment) Bill, 2017, aims to amend the Negotiable Instruments Act, 1881, asking the drawer of a cheque that has been dishonoured to pay interim compensation to the complainant.
2. The interim compensation will, however, not exceed 20% of the amount of the cheque that was dishonoured.
3. The interim compensation is to be paid by the drawer of the dishonoured cheque in a summary trial or a summons case. It is applicable even if he pleads not guilty to the charge made in the complaint.
4. The drawer of the cheque has to pay interim compensation within 60 days from the date of the order. If the court is satisfied, it can grant an extension of a further 30 days but not beyond that.
5. In case the drawer of the cheque is acquitted in the case, the complainant has to repay the drawer the interim compensation with interest. The repayment has to be made within 60 days from the date of the court order.
6. Aiming to reduce delays in resolution of cheque bouncing cases, the Negotiable Instruments (Amendment) Bill, 2017, will not become an Act till it is passed by both Houses. Clearance from Rajya Sabha is now awaited.



More in National
Narendra Modi Becomes Second Indian PM To Win Ig Nobel Prize

Prime Minister Narendra Modi has been awarded the Ig Nobel Prize for 2020 for his contributions to medical education, alongside the heads of the governments of Braz...

Recently posted . 0 views

500 रुपयों से अरबपति बने और एक झटके में अरबों के कर्ज़दार हो गए, बिज़न...

आपने ये कहावत तो ज़रूर सुनी होगी कि भगवान जिसे देता है छप्पड़ फाड़ के देता है. इसके साथ-साथ ये भी देखा होगा कि किस्मत जब छीनने पर आती है तो इंसान के पैरों के नीचे की ज़...

Recently posted . 0 views

Watch video: How the new Pamban Bridge will be Indian Railways’ first ...

The foundation stone of this 2 km long railway sea bridge, connecting Rameswaram on Pamban island and mainland India, was laid by Prime Minister Narendra Modi in ...

Recently posted . 0 views

Ayodhya readies for grand Ramleela over 9 days, Bollywood stars to per...

Earlier this year, the foundation stone for construction of a grand Ram Temple was laid in Ayodhya by PM Narendra Modi.

Recently posted . 0 views

How School Girls From Bulandshahr Stopped Child Marriages During the P...

Preeti was 5 when she joined the school. Besides learning English and Maths, Preeti was told that she needs to demand for her rights and not meekly accept her fat...

Recently posted . 0 views

Gyms, Yoga Institutes To Reopen In Delhi From Today

All coronavirus protocols issued by the central government have to be strictly followed in gyms and yoga institutes which include masks and social distancing.

Recently posted . 0 views



Thought of the day

“Your smile is your logo, your personality is your business card, how you leave others feeling after having an experience with you becomes your trademark.”