Chech Dishonor Punishment Bill Register in Parliament house

A bill to amend the Banking Offenses and Punishment Act, 2064 has been registered in Parliament. Finance Minister Prakash sharan Mahat registered the bill in the House of Representatives.It is said that this bill has been introduced to make the investigation, prosecution and action of criminal acts such as dishonor of checks in banking and financial system transactions systematic and effective.

The government has prepared this bill based on the suggestion that the Banking Offenses and Punishment Act should be amended from the study of the Attorney General’s office and the order of the Supreme Court that it should be made uniform as there are different types of legal treatment in the case of check dishonor. The Cabinet meeting on 23rd July approved the draft of this bill.

A provision has been made in the Bill that a person should not issue a check without the balance in his account. No one should knowingly issue a check to someone knowing that there is no balance in his bank account or even if the balance is not sufficient for payment or demand payment of such a check from the bank the bill states. If the amount required to pay the check is not available in account, such check must be returned by the bank and financial institution to the holder.

If the person who wants to exchange this check wants to prove that the check has been dishonored, the bank must give a maximum of 30 days to deposit the necessary amount in his account and notify the relevant account holder and to keep the records of the same.

The bank will have to return the check after disclosing the information given in that way. If the money is not available in the account even within 30 days, the process of proving that the check will charge by bank dishonored proceed.

Penalties for banking offenses related to check dishonor are also going to be revised. In Banking Offenses and Punishment Act, 2064, if a check is dishonored there is a provision of fine and imprisonment of up to three months. However, if the check is proved to be dishonored the draft has been prepared to impose a fine of five percent of the amount on the account holder who issued the check to holder by paying the wrong amount to the holder.

In the bill, there is a provision of imprisonment for up to 5 lakhs for one month, imprisonment for 3 months for 5 to 10 lakhs, imprisonment for 6 months for 10 lakhs to 50 lakhs and imprisonment for up to two years for any amount exceeding 50 lakhs.

Similarly, a provision is being made that a case can be filed in the relevant district court within three months from the date of proof of check dishonor.