New legislation imposes stricter penalties for cheque bouncing

Kathmandu: Under newly passed legislation, individuals convicted of cheque bouncing may face imprisonment ranging from one month to two years. This development was confirmed during a recent meeting of the Finance Committee on the Banking Offenses and Punishment (Second Amendment) Bill, 2080.

The committee detailed that the length of imprisonment will be contingent upon the value of the bounced cheque. Specifically, cheques amounting to up to Rs 1.5 million will result in a one-month prison sentence, while those up to Rs 5 million will incur a three-month term. Additionally, offenders will face a fine of five percent of the cheque’s value.

Finance Committee Chairman Santosh Chalise stated that these new measures are designed to address the persistent issue of unpaid dues despite existing legal penalties. The changes aim to ensure justice for victims and bolster the reliability of cheque transactions.

Deputy Prime Minister and Finance Minister Bishnu Paudel expressed support for the proposed changes, noting that the discussions on the bill have been productive. He stressed that the increasing incidence of cheque bouncing necessitates more stringent penalties to deter such offenses.

In related discussions, MP Surya Thapa proposed the national standardization of compensation or interest rates to enhance trust in cheque transactions. MP Dr. Prakash Sharan Mahat endorsed the combination of imprisonment with the five percent fine, while MP Dr. Swarnim Wagle suggested implementing even harsher penalties for cheques exceeding Rs 10 million.