Have you recently faced the non-payment of your rightful money due to a cheque bounce? Frustrating, isn’t it? The feeling of being cheated and not receiving your rightful money is indeed disturbing. But don’t worry, it is one of the most common financial crimes that people face. You can, however, make the guilty party feel the full force of Indian law. It is a crime, and criminal action can be taken against the offender.

What is cheque bounce?

The payee (the person for whom the cheque is issued) deposits the cheque issued in their name at their bank. Usually, there is a 90-day timeline from the issuance date to deposit the cheque.

If the bank cannot clear the cheque that is presented within the prescribed time, and the payee does not receive the amount due as per the cheque, it is considered a bounced or dishonored cheque.

There can be various reasons for this, including a mismatch in the details filled on the cheque, a mismatch in the signature, or insufficient balance in the account of the issuer.

This could be either a mala-fide (deliberate) or a bona-fide (inadvertent) mistake. In cases of mala-fide intention on the part of the issuer, the payee has every right to resort to legal action against the culprit.

However, the reason of insufficient funds in the drawer’s account is a punishable offense as per Indian law.