“Cheque Bounce Matters: Your Legal Rights & Recourse Explained”
In the world of financial transactions, cheques are a common and trusted mode of payment. However, when a cheque is dishonoured or "bounced," it can lead to not just monetary loss but also legal complications. In India, cheque bounce is not merely a financial issue—it is a criminal offence under the law. This article breaks down the legal rights and remedies available when a cheque bounce occurs and explains how you can safeguard yourself legally and financially. What is Cheque Bounce? A cheque bounce occurs when a bank refuses to honour a cheque. The most common reasons include: Insufficient funds in the drawer’s account Signature mismatch Stale or expired cheque Account closed Mutilated or overwritten cheque When a cheque is bounced due to insufficient funds, it attracts penal provisions under…