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CHEQUE BOUNCE PENALTY

CHEQUE BOUNCE PENALTY

If a cheque bounces due to insufficient funds or any other technical reason, such as signature mismatch, both the defaulter and the payee are charged by their respective banks. The penalty charges for cheque outward return are close to Rs. 300 for most banks, while charges for cheque inward return are about Rs. 100.

The court, after receiving the complaint along with relevant documents, will start the case. If the drawer is found guilty, he/she will have to, as per Section 138 of the Negotiable Instruments Act, 1881, spend time in jail for up to two years and/or pay penalty of amount twice the cheque amount. In addition, the banks also have the right to close the guilty person’s account (on repeated bounce cheque offense) or stop their cheque book facility. The bank may also charge penalty to both the drawer and the payee for the inconvenience, extra paperwork and wasting the bank’s time.

Cheque Bounce Penalty by Popular Banks

SNo.

Bank

Charges

1.  

SBI

 

Cheque/bill deposited with SBI returned unpaid by others (Local/ Outstation)

·      Cheque/bill up to ₹1.00 lacs – ₹150/- + GST

·      Cheque/bill above ₹1.00 lacs – ₹250/- + GST

 Cheque Returned Charges for Cheques drawn on SBI (for insufficient funds only) (for all segments)

·  ₹500/- + GST (irrespective of the amount)

Cheque returned charges for Cheques drawn on SBI (for technical reasons) for all segments when customer is at fault.

·  ₹150/- + GST

2. HDFC Bank ·      Savings A/c

Outward: ₹100/-

Inward: First cheque return in a quarter – ₹350/-. From second cheque return in the same quarter – ₹750/- per return

·      Current A/c

Outward: ₹50/-

Inward: ₹300/-

Dishonour of Outstation Cheques

·      Regular Savings

Outward: ₹100/-

Inward: ₹350/-

·      Senior Citizen Account

Outward: ₹80/-

Inward: ₹350/-

3. ICICI Bank Local Charges

·       Cheque deposited by customer – ₹100/- (for every cheque return for financial reasons)

·       Cheque issued by customer –₹350/- (for one cheque return per month); ₹750/- per return in the same month for financial reasons. ₹50/- for non-financial reasons except for signature verification for every cheque return for financial reasons.

 Outstation Charges

·      Outstation cheque deposited by customer – ₹150/- + other bank charges at actual per cheque.

4. Axis Bank Return of cheques deposited at home branch for local clearing – ₹500/- per cheque
5. Bank of Baroda Cheque (deposited by BOB’s customer and returned unpaid (Inward Return)

·      Up to ₹1 lac – ₹125/-

·      Above ₹1 lac to less than ₹1 crore – ₹250/-

·      Above ₹1 crore – ₹500/-

Cheque (drawn on BOB) returned (Outward Return)– (Financial Reason)

·      Up to 1 lac – ₹250/-

·      Above ₹1 lac to less than ₹1 crore – ₹500/-

·      For ₹1 crore and above – ₹750 per instrument

In case the bank remains out of funds; actual interest @ 7.5% over base rate is to be charged extra

Team Legal has expert lawyers for Cheque Bounce matters. Our dedicated lawyers handle cheque bounced cases in Noida, Delhi & Gurgaon. For any queries and cases related with cheque bounced penalty kindly call Team Legal on 0120-413-0865.

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