New Delhi: Bank defaulters need to be more cautious regarding their funds in their bank account while they pay someone through a cheque. The government is likely to amend the present law of punishment, making it a non-bailable offence if the cheque gets bounced.
The Ministry of Law and Justice is planning to implement the bill to cut down the pending cases of nearly 20 lakh cheque bouncing in India, as per IndianExpress.
As soon as a case is filed in the court, a time period would be given to both parties to settle the cases out of court under the proposed Negotiable Instruments (NI) Act. Failing to which the defaulter would land into jail.
It will also have a condition for the defaulter to defend himself only when he deposits the amount in the court. Last year, the government had amended the Act and allowed the filing of cases in a court at a place where the cheque is presented for clearance and not at the place of issue.
“We are now working on little modalities as suggested by various stakeholders and most likely we will introduce the same in the upcoming session of Parliament,” said a law ministry official.
The new law will also encourage the cashless transaction, he added.