KATHMANDU: Under new legislation, individuals convicted of cheque dishonor (cheque bouncing) will face imprisonment ranging from one month to a maximum of two years.
This update was confirmed during a weekly discussion on the Banking Offenses and Punishment (Second Amendment) Bill, 2080, by the Finance Committee of the House of Representatives, held at Singh Durbar on Sunday.
The Committee has reached an agreement that the length of imprisonment will depend on the amount of the bounced cheque.
Specifically, cheques up to Rs 15 lakhs will result in one month of imprisonment, while cheques up to Rs 50 lakhs will incur three months of imprisonment.
In addition to these terms, a fine of 5 percent of the cheque amount will also be imposed.
Committee Chairman Santosh Chalise emphasized that these new provisions are designed to address the problem of non-recovery of funds even after punishment, with the objective of ensuring justice for victims and improving the credibility of checks.
Deputy Prime Minister and Minister of Finance Bishnu Paudel indicated that discussions on the bill have been positive and that the government is prepared to accept the conclusions from the ongoing discussions.
He noted that the rising number of cheque bounces necessitates stricter penalties to deter such offenses.
MP Surya Thapa suggested that compensation or interest should be standardized at the national level to prevent a crisis of trust related to checks.
MP Dr. Prakash Sharan Mahat supported the practical approach of combining imprisonment with a 5% fine.
Meanwhile, MP Dr. Swarnim Wagle called for particularly severe penalties for bounced cheques valued over Rs one crore.
