Rules Concerning Check Bounce: The government may enact new legislation in this area

 Rules Concerning Check Bounce: The government may enact new legislation in this area

Cheque Bounce Rule: The number of Cheque bounce instances will decrease if the government enacts new regulations based on the expert committee's suggestions.

New Delhi: Bank transactions are typical in the modern era. The majority of individuals use checkbooks to make their financial payments. This is regarded as one of the safest payment options and is also one of the oldest. In between, you also hear the news about the bounce of checks. It is anticipated that the government would soon be able to tighten controls and alter relevant regulations in light of the rising number of instances.

A committee of experts has been established.

The government is moving quickly to introduce new regulations around the bounce of checks. In order to propose regulations pertaining to this, the government established an expert committee of the Supreme Court. In addition, the Finance Ministry convened a high-level conference about the new regulations some time ago.

A sum of money will be taken out of another account.

The phenomenon of a cheque bounce arises when an account holder writes a check even if there is insufficient funds in the account. To avoid this, new regulations that allow the Finance Ministry to take money from the account holder's other bank accounts in the event that the account balance is insufficient may be put in place. In addition to enforcing tight measures, there is discussion of applying penalties via legal action.

won't be permitted to create another account

A person will not be permitted to create another bank account if their check bounces as a result of the new check bounce regulations. The government is hoping that the bounce rate would decrease as a result of the implementation of this regulation.

Not able to accept any loans

Taking out a loan may become more difficult with the new check bounce regulations as the bounced check may indicate a loan default. In the event that this occurs, the defaulter's CIBIL score might drop and future loan applications could become more difficult.