Finance Ministry's strong rule for cheque fraud..!? Be careful..!

Sowmiya Sriram
Finance Ministry's strong rule for cheque fraud..!? Be careful..!

The Union cabinet is considering various measures to bring various reforms to cheques. So it is expected that tough measures will come soon on cheques. Every day we are reading a lot of news about the bounce of cheques. No matter what regulations are in place, scams are still taking place.
Many cheque scams in particular involve cheque bounces. It seems that the central government is considering many schemes such as deducting money from other accounts of the cheque issuer and preventing the opening of new bank accounts for such reasons. It has been reported that a high-level meeting was convened recently and many recommendations were received in that meeting.
It is said that such cases increase the burden on the law and therefore some recommendations have been made in the meeting to prevent this. If these recommendations are implemented, payers will be forced to cash the cheque. This may prevent the practice of issuing cheques without funds in the account.
A cheque is bounced when the drawer presents a cheque to a bank for payment and it is returned void. As per Section 138 of the Act, the cheque bounces but the payee can file a suit in court. It is also an offense punishable by capital punishment.
In recent cheque bounce cases, PHDCCI has asked the issuer to take responsibility for its actions and take action such as mandatory suspension of withdrawals for a few days. It is also noteworthy that PHDCCI has asked that the problem should be resolved within 90 days from the date of the cheque bounce.
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