Q: Is bouncing of cheque a criminal offence?

Ans: According to Section 138 of the Negotiable Instruments Act ,  a cheque will bounce if there are insufficient funds in the bank, if there is a discrepancy in the signature, etc.

Cheque bouncing is a criminal offence in India as well as a person could get imprisoned for up to 2 years and would need to pay twice the amount stated in the dishonored cheque.

In addition to it, in Section 143A, it is quite clear that an interim compensation can be given to the complainant for the issues caused due to the Cheque Bounce.

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