Money Will Be Recovered From Another Account When Your Check Bounces Know Government Plan

Check Bounce: There are many cases of check bounce in the country, but till now no result has come out in these cases. Now the government is preparing a new plan for these matters. If someone’s check has bounced, not only will legal action be taken against him, but the money will be recovered from the person’s other account.

According to the information received from the sources of CNBC Awaaz, the government has made complete preparations with the RBI and may implement the new system soon. Recovery of money from another account simply means that the check holder will have to pay the money in any case. Also there can be punishment.

Loan default rules will apply

It has been said in the report of CNBC that after this process is developed, the credit score of the company or person with check bounce will also deteriorate. Apart from this, the rules of loan default will also be applicable for these cases. This will reduce the cases of check bounce and people will back away from bouncing the check themselves.

Rules discussed in the meeting

The RBI and the government have held a meeting last week regarding this rule. Regarding this rule, it was said that due to its arrival, no new account will be opened even if the check bounces. Along with this, money will also be recovered from another account.

How many years of punishment in check bounce

In the case of check bounce, there is a provision of punishment of 2 years and it can be changed in the coming times. According to PTI, a Supreme Court panel had also suggested some changes in the Negotiable Instruments Act, 1881. Explain that under the Negotiable Instruments Act, 1881 (NI Act), there is a provision of punishment for check bounce.

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