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Govt likely to drop plan to decriminalise cheque bounce offences

It would seek directions from a Supreme Court panel formed to expedite the pendency of cheque bounce cases before taking a final call

cheques, cheque bounce, banking, payments

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Last year the Department of Financial Services (DFS) had proposed decriminalising minor offences, which included cheque bouncing, for improving business sentiment and unclogging court processes

Nikunj Ohri New Delhi

2 min read Last Updated : May 12 2021 | 6:10 AM IST

The government may drop its plan to decriminalise cheque bounce offences after there were requests to continue the existing system, which can potentially make people honour their financial commitments due to fear of prosecution.

It would seek directions from a Supreme Court panel formed to expedite the pendency of cheque bounce cases before taking a final call.

Last year the Department of Financial Services (DFS) had proposed decriminalising minor offences, which included cheque bouncing, for improving business sentiment and unclogging court processes.

The DFS had invited comments from stakeholders for the move that was proposed as a post-Covid-19 response strategy to help revive

Topics : Cheque bounce central government Supreme Court financial fraud Banking sector Banking Indian Banks

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