What is cheque bounce charges

Cheque bounce charges are penalties levied by banks when a cheque is dishonoured due to reasons like insufficient funds or signature mismatch. These charges typically range from Rs 100 to Rs 750, depending on the bank's policy and the cheque amount. Under Section 138 of the Negotiable Instruments Act, a bounce due to insufficient funds is also a criminal offence, which can lead to legal penalties including a fine of up to twice the cheque amount, imprisonment for up to two years, or both.