Check bounce regulations: The RBI recently modified the regulations regarding check bounce; be aware right now to avoid a significant loss.

 

Recently, the RBI altered the regulations governing check bounces, which might put you in a lot of problems going forward and make it difficult to obtain a bank account. Let's review the entire news.


New Delhi: Bank transactions are becoming routine in this day and age. The majority of people use chequebooks to make payments. It is one of the earliest forms of payment and is regarded as being fairly secure. In-between news about check bounces is also provided. It is anticipated that the government will soon tighten the screws and alter the laws around it in light of the rising number of instances.

A committee of experts has been established.

The administration is moving quickly to implement new check bounce regulations. For this, the government established a Supreme Court expert committee that makes recommendations for relevant rules. In addition, the Finance Ministry recently conducted a high-level conference to discuss the new regulations.

Amounts will be taken out of another account.

The problem of check bounce comes to the fore when the account holder issues a check despite not having adequate money in his account.

New regulations could be put in place to prevent this, allowing the Finance Ministry to take funds from the account holder's other bank accounts if there isn't enough money in the account. It has been said that fines may potentially be imposed as a legal action in addition to stringent measures.

unable to open a new account

After the new check bounce regulations go into effect, if someone's check bounces, he won't be permitted to open any more bank accounts. The government anticipates a decrease in bounce rates with the implementation of this rule.

won't be able to borrow any money

The new check bounce laws may make it difficult to obtain a loan because a check bounce can be used as evidence of a loan default. If this occurs, the defaulter's CIBIL score may decline, making it more difficult for them to obtain loans in the future.