Now Cheque Bouncing will be Costlier, Govt Mulls over Harder Punishment for the Accused

The Cheque bouncing was always an offense punishable under the criminal law under IPC Section 138. But many times the accused would easily manage to come out with the offense taking the advantage of the loopholes persisting in the law. But now the times are changing and the cashless society has resulted into increase in the possibility of all the payments by cheques. Taking the above into the consideration the Government has decided to make the Cheque Bounce Law more stringent with harsher punishment to the accused in ‘Cheque Bounce’ case.    

According to the information published in the Times of India, The government is mulling over incorporating stringent changes in the law to make the harsher punishment for Cheque Bouncers” with cash crunch prevailing in the market while traders are getting more inclined towards the cheque payment. According to the sources, traders are looking to use more of bank cheques, but with additional guarantees.

According to the sources, the trader’s associations have also suggested the imprisonment for the cheque issuer within a month of bouncing the cheque. According to the traders association, looking at the implications, the cases of cheque bouncing would reduce substantially.

The suggestion of the same has come from the finance ministry following the officials met with delegations of the trader’s associations as part of the pre-budget exercise. The associations said to have had urged the government to consider this as part of its steps to normalize business post demonetisation.

According to the sources, the traders are wary of accepting the cheques from customers under the fear of they bouncing the same. They have demanded the severe punishment for those issuing such cheques. Traditionally considered as BJP’s vote bank, traders have been severely hit by the currency ban announced by Prime Minister Narendra Modi. Now, with the cash crunch still continuing even as the 50-day window, stipulated by the PM, draws to a close, the traders are looking to use more of bank cheques, but with additional guarantees. Among the suggestions put forward by the traders’ associations for cases of bounced cheques is imprisonment for the issuer of the cheque within a month of it bouncing, sources said.

According to the sources, it is not clear whether the government would agree to the specific suggestions. But sources said the Centre is mulling stringent punishment for ‘cheques bounce’ cases. The legislation is likely to be brought in during the budget session of Parliament. It is being seen as a move to soothe traders, who have been hit hard by the cash crunch, ahead of state polls in a string of states, including Uttar Pradesh and Punjab.


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