Banking

Is cheque bounce a criminal offence in india

Yes, a cheque bounce is a criminal offence in India under Section 138 of the Negotiable Instruments Act, 1881. This applies specifically when a cheque issued to discharge a legally enforceable debt or liability is returned unpaid by the bank, typically due to insufficient funds or mismatched signatures. The legal consequences for the drawer can include:
  • Imprisonment for a term of up to two years.
  • A fine that may extend to twice the amount mentioned on the cheque.
  • Both imprisonment and a fine, depending on the court's judgment.

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