What Is Cheque Bounce?

It is a cheque that is not successfully converted into cash due to different reasons. Receiving a bounced cheque is a criminal offense and is punishable by law.

Documents Required

1. A cheque return memo signed by the bank
2. A written complaint.
3. An affidavit stating the facts mentioned are accurate.
4. A photocopy of documents like cheque, memo, notice copy, acknowledgment receipts, etc.

What Is The Process Of Registration?

1. When all the documents are received, the court issues summons.
2. The court hears the matter.
3. The defaulter is punished by a monetary penalty or imprisonment of two or more years if found guilty.
4. The bank has the right to discontinue the cheque facility and close the account of the defaulter.
5. The drawee is liable to an interim payment of 20% of the cheque amount, according to the act.

FREQUENTLY ASKED QUESTIONS

You may face heavy fines and imprisonment starting at 3-6 months depending on the amount due.

According to the IIA International Professional Practices Framework, the International Standards for the Professional Practice of Internal Auditing (Standards) guides the internal audit profession.

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