BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Imprisonment
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Fine equal to the value of bounced cheque
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Fine equal to double the amount of bounced cheque
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Monetary fine and imprisonment
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Detailed explanation-1: -If found guilty, the defaulter can be punished with monetary penalty which may be twice the amount of the cheque or imprisonment for a term which may be extended to two years or both. The bank also has the right to stop the cheque book facility and close the account for repeat offences of bounced cheques.
Detailed explanation-2: -Section 138 of the Negotiable Instruments Act states the dishonour of cheque or cheque bounce is a criminal offence and the punishment includes imprisonment up to two years or monetary penalty or with both.
Detailed explanation-3: -PUNISHMENT: After the amendment of 2002 the imprisonment that may be imposed may extend to two years, while fine may extend to twice the amount of cheque. However, the trial is conducted in summary way, then Magistrate can pass sentence of imprisonment not exceeding one year and amount of fine exceeding Rs. 5, 000/.
Detailed explanation-4: -A.It will be Court fees of 2% of the cheque amount which is Rs 2000 in your case.
Detailed explanation-5: -If the issuer is thus found guilty, the individual will be penalised with a fine or imprisonment under Section 138 of the Negotiable Instruments Act. The recipient of a bounced cheque is also empowered to take protection under Section 420 of the Indian Penal Code, 1860, as the act amounts to cheating.