Hey,
Is there any penalty for bounced cheque? The answer is yes. My father has recently told me what is the penalty for cheque bounce, so I can tell you about it. The issuer is responsible for the penalty on the dishonored cheque depending on the reason for the bounce. As per the Negotiable Instruments Act,1881, it is a criminal offense to dishonor a cheque due to insufficient funds.
So, if you are issuing a cheque against an account with inadequate money, then you need to pay the charges. The payee gets three months to sue you or allow you to reissue a cheque. You might even face up to 2 years in prison to issue a dishonorable check. Banks also charge penalty fees. The penalty charges varies from one bank to another. Let me tell you about the penalty for bounced cheque in India.
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How Much Penalty for Cheque Bounce| Bank Name | Penalty Charges (GST applicable) |
Bank of Baroda |
Above Rs. 1 crore - Rs. 750 per instrument Above Rs. 1 lac to less than Rs. 1 Cr ore - Rs. 500 Up to Rs. 1 lac - Rs. 250
Above Rs. 1 Cr ore - ₹500 Above Rs. 1 lac to less than Rs. 1 Crore - ₹250 Up to Rs. 1 lac - Rs. 125
|
HDFC Bank |
R s. 550 + GST |
Axis Bank |
|
ICICI Bank |
|
SBI |
|
Now you know what is penalty for cheque bounce.
Related Answer:
What happens if a cheque bounces?
Does cheque bounce affect CIBIL score?
How Can I Find a Cheque Number?
I hope now you have a complete understanding of what is the penalty for cheque bounce.
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Authors Of The Question
How much penalty for cheque bounce?
Suman
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1 Answers
2 Year
2022-09-02T18:38:18+00:00 2022-09-08T13:12:12+00:00Comment
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