Check Bounce Rules: Bouncing a check is considered an offence. There is also a provision of punishment if the check bounces. If the check bounces then the drawer is held guilty. That is, if a check is given to you by someone else and it bounces, it will be considered as delinquent.
If the check bounces then a legal notice will be sent to that person. The person has to answer this within 15 days. If he fails to do so, a case can be registered against him under the Negotiable Instruments Act, 1881.
A case of check bounce can also be registered under section 148 of this Act. This is a punishable offence. The offender can be jailed for up to 2 years.
Not only this, a fine of up to 800 rupees can also be levied if the check bounces. If a check bounces, there is a penalty in addition to the fine. This can be double the amount written on the cheque.
However, this happens only when the check is dishonored by the bank. The customer also has some rights in case of bounced check.
Check bouncing is a bailable offense if the punishment is less than 7 years. This does not include jail until a final decision is made. If one is convicted in this case, he can apply to the trial court under 389(3) of the Code of Criminal Procedure.