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CAIT urges govt not to decriminalise bouncing of cheques, writes to FM

The finance ministry has proposed to decriminalise a host of minor offences, including those related to cheque bounce and repayment of loans

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CAIT Secretary General Praveen Khandelwal said that if the person issuing the cheque knows that there is no criminal liability then it will give rise to the ease of being dishonest rather than promoting ease of doing business

Press Trust of India

3 min read Last Updated : Jul 20 2020 | 9:27 PM IST

Traders' body CAIT on Monday urged the government not to decriminalise bouncing of cheques, saying the move will not only nullify the sanctity of cheques but also contradict Prime Minister Narendra Modi's vision of a fair and trustworthy business environment in the country.

In a letter to Finance Minister Nirmala Sitharaman, the Confederation of All India Traders (CAIT) said the country's business community has been perturbed by the proposal to decriminalise Section 138 of the Negotiable Instrument Act, 1881, (NI).

The Section makes bouncing of cheques a criminal offence.

"Decriminalisation of this provision needs a serious thought as this would lead to a

Topics : Nirmala Sitharaman CAIT Finance Ministry

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