At times when people give cheques, be it business or personal, it bounces due to lack of funds. This is what will happen to those who pay with bounced cheques.
Union Cabinet chaired by Prime Minister Narendra Modi on Friday cleared a bill for imposing stricter provisions for cheque bounce, and incentive for the payee who suffers, Law and Justice Minister Ravi Shankar Prasad said.
Prasad said the bill would amend the Negotiable Instrument Act, 1881 to bring “stricter provisions for cheque bouncing and incentive for the payee who suffers”.
The Act defines promissory notes, bills of exchange, cheques and creates penalties for issues such as bouncing of cheques