A bounced check can land you in court; learn how to avoid it.

Check Bounce Law: Can a bounced check land you in jail like Rajpal Yadav? Learn how taking it lightly can be costly. Also, learn how to avoid court visits and hefty fines.

Check Bounce Law: Famous comedian Rajpal Yadav recently spent 12 days in Tihar Jail for a ₹9 crore check bounce case. If you think a bounced check is just a minor technical issue at the bank, you, too, could find yourself in serious trouble like Rajpal Yadav. In fact, a bounced check can land you directly in court and is considered a serious offense under Section 138 of the Negotiable Instruments Act. Legal experts say that ignoring it can be detrimental not only to your bank account but also to you.

Check Bounce: Does it really lead to jail time?

According to legal experts, a check bounce doesn't result in immediate jail time, but it's possible. The court's primary goal is to recover the money. Most cases are resolved when the payee pays the balance within 15 days. However, if someone repeatedly avoids paying or commits fraud, the court can impose a harsher punishment.

Check Bounce: Why is a 15-day notice necessary?

When you receive a notice from your bank or lawyer after a check bounces, ignoring it is the biggest mistake you can make. The law gives you 15 days. If you pay within this time, the case may be dismissed. Experts say that remaining silent or failing to respond could result in a fine of twice the check amount and legal expenses.

Check Bounce: What will be the impact on your bank and CIBIL score?

Check bouncing not only causes legal but also financial losses. Banks impose a penalty of ₹500 to ₹1,000 for each bounced check. If the issue involves loan EMIs, your credit score (CIBIL) will drop significantly, making it nearly impossible to obtain a new loan or credit card in the future.

Check Bounce: Can a Security Check Be Sued?

Many people believe that if they've given a security check as a guarantee, the police or court won't take any action if it bounces. But this is a major misconception. Under the law, every check you sign has full value. If you borrow money from someone and your check, given as a guarantee, bounces, you'll face the same charges as if a normal check were to bounce.