What is the charge for cheque bounce?

In India charges for bounced cheque can vary depending on the bank, the type of account, and whether it’s the first or a repeat offense. Cheque bounce, or dishonor of a cheque, happens when the bank refuses to process the cheque due to insufficient funds, a mismatch in signatures, or other reasons. The consequences can include both financial penalties and legal action.

What are the Bank Cheque Bounce Charges?

Banks typically levy penalties on both the drawer (person who issued the cheque) and the payee (person receiving the cheque) if the cheque bounces.

• For the Drawer (Issuer): Charges can range from Rs. 200 to Rs. 1,000 per cheque, depending on the bank and the account type.

• For the Payee (Receiver): Some banks also impose a charge on the payee for presenting a dishonored cheque, usually between Rs. 100 and Rs. 500.

Under Section 138 of the Negotiable Instruments Act, 1881, cheque bounce is a criminal offense. If a cheque bounces due to insufficient funds, the payee can issue a legal notice within 30 days.

If the issuer fails to settle the amount within 15 days of receiving the notice, the payee can file a complaint in court. Penalties can include fines up to twice the cheque amount or imprisonment for up to two years.

In addition to bank charges, the defaulter may also incur legal expenses if the matter escalates to court.

Preventing Cheque Bounce:

Ensure sufficient funds are available in the account before issuing a cheque.

Regularly monitor account balances and keep track of issued cheques.

Verify that the signature, date, and other details are accurate.

Cheque bounce in India can lead to financial penalties ranging from Rs. 200 to Rs. 1,000, along with potential legal consequences. Avoiding this requires careful financial management and adherence to banking guidelines.

This is all about bounced check fees.

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I am a bank employee and I can tell you everything that I know about cheque bouncing charges. But before that, I think I should tell you that the cheque bounced in contravention of the Negotiable Instrument Act of 1881 comes under section 138 of it. I am telling you this because act explains the penalty of a Bounced cheque which is usually payable at the double value of the check. And it may also lead to 2 years of imprisonment.

What is cheque return charges?

Now let me tell you what about check actually means. Whenever a customer presents a check in a bank for any kind of claim and the bank rejects the claim or their check with a message indicating that there is some kind of financial difficulty then that is known as a Bounced check.

The cheque bounce penalty charges of different banks in India have been explained in the previous answers. You can check out the table in the previous answers for the same.

Here I will tell you that it is not just the customer who is required to be the penalty of a bound check. The fee has to be shared by both the defaulter and the payee. The penalty or fee that is charged against a bounced cheque is usually referred to as NSF fee. 

NSF fee is charged when there are insufficient funds in an account. The bounced check penalty charges can be different for different bags as it depends on different factors and reasons for which a check is getting bounced.

Hi,

I remember how embarrassing it was when my cheque bounced a few months ago. They even penalised for that. So, after that incident, I did some research on the cheque bounce charges for both party. I’ll tell you what I learned.

In case a cheque bounces due to insufficient funds or some other technical reasons, like mismatching of the signature, their respective bank charges for both the payee and the defaulter.

The penalty charges for cheque inward return are approximately Rs. 100 while charges for cheque outward return are approximately Rs. 300 for most banks.

The penalty charges vary from bank to bank and from account type to account type. The penalty charges for premium accounts are generally higher.

How Much Does Bank Charge for Bounced Cheque

This is all about the bank charges for bounced cheque.

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I hope you liked my answer on the cheque bounce charges for both party.