Table Of Content
Introduction: Think Cheque Bounce is Just a Minor Issue? Think Again.
Many people don’t realize that cheque bounce is not just a financial error—it’s a criminal offense under Indian law. Whether you issued a cheque that bounced or received one that did, the legal consequences can be serious for both parties.
In this easy-to-understand guide, we’ll explain:
Why cheque bounce is considered a crime in India
What legal actions you can take
Remedies available to both the issuer and receiver
How RTI and RTIwala can help track unresolved cheque bounce cases
What is Cheque Bounce?
A cheque bounce occurs when a bank fails to honor a cheque due to reasons like:
- Insufficient funds
- Signature mismatch
- Account closed
- Payment stopped by drawer
In India, this offense is governed by Section 138 of the Negotiable Instruments Act, 1881, which makes bouncing of cheques a punishable criminal act.
Why Cheque Bounce is a Criminal Offense
According to Section 138, if a cheque is dishonored:
- The drawer (issuer) can face up to 2 years of imprisonment, or
- A fine up to twice the cheque amount, or
- Both
This provision is meant to maintain trust in banking and financial transactions. Repeated or deliberate cheque bounces are treated as acts of fraud.
Legal Procedure After a Cheque Bounces
Step 1: Cheque Bounce Notice (Within 30 Days)
The payee (receiver) must send a legal notice to the drawer within 30 days of receiving the cheque return memo from the bank.
Step 2: Wait for Payment (15 Days)
The drawer gets 15 days to clear the amount. If they don’t…
Step 3: File Criminal Complaint (Within 30 Days)
The payee can file a criminal complaint under Section 138 in the Magistrate’s Court.
Court Fee: Varies by state
Timeline: Cases can take 6–18 months depending on evidence and backlog
Legal Consequences of Cheque Bounce
For the person who issued the cheque:
- Arrest Warrant may be issued for non-appearance
- Bank Account may be frozen for repeated offenses
- May be blacklisted by RBI if part of systemic fraud
- Can hurt credit score and job prospects
What Are Your Remedies as a Payee (Receiver)?
- Send Legal Notice: Must be in writing within 30 days
- File RTI to check case status if no action from police
- Approach Lok Adalat or negotiate a compromise
- File a complaint with RBI/Banking Ombudsman for persistent fraud
- Civil Suit: You can also sue for recovery with interest
How RTI Can Help in Cheque Bounce Cases
If you’ve filed a police complaint and got no response, RTI can uncover:
- Case registration status (FIR number)
- Reasons for police inaction
- Copy of investigation report
- Court case file movement or delay explanation
File an Online RTI with RTIwala to get real-time updates from:
- Police Station
- Magistrate Court
- District Legal Services Authority
If you’re afraid of retaliation from the accused, use Anonymous RTI for safe filing.
Key Legal Documents Needed for Filing Cheque Bounce Complaint
- Original cheque and dishonor memo
- Legal notice copy and delivery proof
- Account statements showing non-payment
- ID and address proof
- RTI reply (if applicable) to strengthen your case
RTIwala Services to Support Cheque Bounce Complaints
- Online RTI Filing: Track police and court delay
- Anonymous RTI: File RTI discreetly for sensitive matters
- Custom Drafting: Professionally written RTI & legal drafts
- Expert Consultation: Get clarity from legal experts
- RTI Products: DIY kits and templates
- Pricing Plans: For one-time or recurring RTI support
Pro Tips to Avoid Cheque Bounce Trouble
- Maintain sufficient balance in your account
- Don’t issue post-dated cheques without planning
- Keep a written record of all cheque-related conversations
- Use RTI to verify if complaints or cases have been filed in your name
Final Word: Cheque Bounce is Not Just a Mistake—It’s a Crime
Whether you’re a victim or a defaulter, cheque bounce cases are serious. They can land you in jail, damage your creditworthiness, and attract costly legal battles. But the law also provides you with tools like RTI to get justice if the system isn’t responding.
If your cheque bounce issue is stuck with police or court, File an Online RTI with RTIwala and take legal control of your case today!
