Strict Penalties for Bounced Checks: Up to Two Years in Jail and Fines

Kathmandu – The Federal Parliament’s Finance Committee has agreed on new rules for dealing with bounced checks under the “Banking Offense and Punishment (Second Amendment) Bill, 2080.” The committee, led by Santosh Chalise, has decided to introduce stricter penalties, including fines and prison time, for those who issue bad checks.

A check will be considered bounced if the person who wrote it either refuses to pay or doesn’t have enough money in their account to cover it. If the bank can’t process the payment because of insufficient funds, it will be treated as a bounced check.

The punishment will depend on how much money the check was for. If the check was for more than NPR 10 million (one crore), the person responsible could face up to two years in jail. For amounts up to NPR 10 million, the sentence will be one year, for up to NPR 6 million, it will be three months, and for checks up to NPR 1.5 million, it will be one month.

Finance Minister Bishnu Paudel, during discussions on Sunday, expressed support for these measures, highlighting the growing issue of bounced checks and the need for stricter regulations to prevent it.

This new law aims to reduce check dishonor incidents and restore trust in the financial system.