New Bill Enforces Stricter Penalties for Cheque Bounce Offenses: Up to Two Years Imprisonment

Individuals found guilty of cheque bounce offenses will now face imprisonment ranging from one month to two years, following a new provision passed by the Finance Committee of the House of Representatives. The Banking Offenses and Punishment (Second Amendment) Bill, 2080 was unanimously approved during a clause-by-clause discussion held on Sunday.

With this amendment, those convicted in cheque dishonor cases will be subject to both imprisonment and a financial penalty. Committee Chairperson Santosh Chalise announced that offenders will face a prison term from one month to a maximum of two years, along with a 5% penalty of the cheque amount. The jail term will vary based on the amount of the dishonored cheque.

The new provisions outline specific penalties based on the cheque amount:

- Cheques up to Rs. 15 lakh will result in a one-month jail term.
- Cheques up to Rs. 50 lakh will incur a three-month prison sentence.
- Cheques up to Rs. 1 crore will lead to a one-year jail term.
- Cheques above Rs. 1 crore will result in a two-year imprisonment.

Speaking during the discussion, Deputy Prime Minister and Finance Minister Bishnu Poudel emphasized that clause 7 of the bill had been a focal point of the debate. He welcomed the positive outcomes of the discussions and affirmed that the government would accept the conclusions reached by the committee.

This amendment is seen as a crucial step toward addressing banking offenses and reinforcing trust in financial transactions. The bill’s approval reflects a strong stance against cheque bounce incidents, aiming to enhance accountability within the banking sector.