Finance Committee Endorses Amended Bill on Banking Offences, Increases Penalties for Cheque Bounce Cases

The Finance Committee has endorsed the Bill to amend the Banking Offence and Punishment Act-2064 BS (2008) with significant amendments, as confirmed by Committee President Santosh Chalise. In a meeting held today, the Committee approved the Bill, introducing stricter penalties for cheque bounce cases, especially those involving large sums.

The newly amended Bill mandates imprisonment of two to four years for cheque bounces exceeding Rs 100 million. This decision came after lawmakers, in today’s meeting, pushed for harsher penalties for cheque bounces involving amounts over Rs 10 million.

Previously, during a meeting on Sunday, the Committee had agreed on a tiered punishment system for cheque bounces: one-month imprisonment for amounts up to Rs 1.5 million, one to three months for Rs 1.5 million to Rs 50 million, and three months to one year for Rs 50 million to Rs 10 million. However, today’s meeting saw these penalties escalated for larger amounts.

The Bill, which was initially accepted by the Council of Ministers on August 8, 2023, and registered in parliament by then Finance Minister Dr. Prakash Sharan Mahat on September 2, 2023, reflects the government’s recognition of the need for more robust legal measures to address cheque bounce cases. This need was further emphasized by an order from the Supreme Court calling for uniformity in legal approaches and an assessment by the Office of the Attorney General.

Under the new provisions, account holders are prohibited from issuing cheques without sufficient funds in their accounts. If a cheque is issued without adequate funds, and the required amount is not deposited within 30 days of notification, the bank is obligated to return the cheque to the bearer and declare it a case of cheque bounce.

The amended Bill is expected to strengthen financial discipline and reduce the incidence of cheque bounces by imposing stricter legal consequences.