Govt clears bill for stricter law against cheque bouncing

Govt clears bill for stricter law against cheque bouncing

The Government of India has cleared a bill for imposing stricter provisions for cheque bounce, and incentive for the payee who suffers.

Law and Justice Minister Ravi Shankar Prasad said the bill was cleared during a Cabinet meeting chaired by Prime Minister Narendra Modi on Friday.

Prasad said the bill would amend the Negotiable Instrument Act, 1881 to bring “stricter provisions for cheque bouncing and incentive for the payee who suffers”.

The Act defines promissory notes, bills of exchange, cheques and creates penalties for issues such as bouncing of cheques.

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    By: KN Web Desk

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