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Cheques

    Home Topics Cheques
    A cheque allows a person to ask their bank to deduct money from their account to give it to another person or to yourself. There are many types of cheques such as order cheque, cross-cheque, bearer cheque etc. Further, there are different ways to encash a cheque and endorse a cheque. However, sometimes there can be processing problems for encashment of a cheque and a possibility of forgery during this process. Through this explainer, you can understand more on the concept of cheque bouncing and punishments for committing cheque related crimes.

    Arrest for Cheque Bouncing

    By Nyaaya | 0 comment
    Cheque bouncing is a criminal offence and you can be arrested by the police. However, it is important to note that the police cannot arrest you without a warrant.In most cheque bouncing cases, a warra
    Read more

    Importance of Signature on a Cheque

    By Malavika Rajkumar | 0 comment
    The signature on a cheque means that the person who has signed it is giving permission to the bank to take money out of his or her account. When you give a cheque to the bank, keep in mind the followi
    Read more

    Cheque Clearing

    By Malavika Rajkumar | 0 comment
    Cheque Clearing means processing a cheque from one bank to another by transferring the amount mentioned on the cheque to the payee’s account. The two most commonly used forms of cheque clearing system
    Read more

    Cheque Truncation System (CTS)

    By Malavika Rajkumar | 0 comment
    Cheque truncation is a form of cheque clearing system. It digitises a physical paper cheque into a substitute electronic form. This is done for transmitting the amount of money mentioned on the cheque
    Read more

    Speed Clearing for Outstation Cheques

    By Malavika Rajkumar | 0 comment
    Cheques can be issued to a person holding a bank account in a bank branch in the same city or outside. When the cheque is issued to a person outside the same city then it becomes an outstation cheque.
    Read more

    Cheque Processing Problems

    By Malavika Rajkumar | 0 comment
    There are several reasons that could cause problems in cheque processing and lead to cheque bouncing. But not all of them warrant legal action. For example, a cheque could bounce if the sign of the dr
    Read more

    Forging a Cheque

    By Malavika Rajkumar | 0 comment
    When you fill a cheque either without the authorisation of the account holder or exceed the amount you were authorised to fill then you have committed a crime. This is known as forging a chequeThe pun
    Read more

    Cheque Bouncing

    By Nyaaya | 0 comment
    One of the ways in which a cheque is said to have been ‘bounced’ or ‘dishonoured‘ is when it is deposited or presented for payment but could not be encashed by the holder of the cheque.There are sever
    Read more

    Notice After A Cheque Has Bounced

    By Nyaaya | 0 comment
    Sending a notice after a cheque has bounced.Punishing the Issuer of the ChequeSend a demand noticeIf a cheque that you’ve received as payment has bounced, you must first send a notice to the issuer of
    Read more

    Intention of Drawer of Cheque

    By Nyaaya | 0 comment
    If a cheque you issued has bounced, Intention of the drawer of the cheque does not matter. It is irrelevant whether or not you intended to for your cheque to bounce. Even if the bouncing of the cheque
    Read more

    Encash a Cheque

    By Malavika Rajkumar | 0 comment
    Follow these steps to encash a cheque.Analyse the type of cheque that has been issued to you.Bearer ChequeIf it is a bearer cheque, then there will be no name written on the cheque. You can:Go to any
    Read more

    Punishment for Cheque Bouncing Cases

    By Nyaaya | 0 comment
    Cheque bouncing is both a civil and criminal offence. You can file a civil suit to recover your money as well a criminal complaint to punish the person for bouncing your cheque. The proceedings for bo
    Read more

    Who Can File a Case for Cheque Bouncing

    By Nyaaya | 0 comment
    To file a case for cheque bouncing, certain conditions have to be met. You can file a civil or criminal complaint under the law if the following conditions are fulfilled:X owes you some money and issu
    Read more

    Where to File a Complaint to Recover Cheque Amount

    By Nyaaya | 0 comment
    Complaint to Recover the Cheque AmountSuch a complaint is a civil complaint. In order to recover your money, you need to file a money suit either in the City Civil Court or the District Court dependin
    Read more

    Filing a Case Against a Company for Dishonor of Cheque

    By Nyaaya | 0 comment
    When a case of dishonour of cheque is filed against a company then every person who was in charge of the conduct of the business of the company, as well as the company will be held guilty of the offen
    Read more

    Time Period for Filing a Complaint for Cheque Bouncing

    By Nyaaya | 0 comment
    There is a specified time period for filing a complaint about cheque bouncing. You must file the case in court within one month after the 15 day notice period has expired. The Court will not entertain
    Read more

    Banks Falsely Bouncing Cheques

    By Nyaaya | 0 comment
    There can be false cheque bounce cases. It is possible that a cheque could be wrongfully dishonoured by the bank, either due to negligence or mistake on part of the bank. This amounts to the offence o
    Read more

    Settlement Out of Court for Cheque Bouncing

    By Nyaaya | 0 comment
    In a cheque bounce case, there is a possibility for settlement out of court. When a criminal complaint is filed for a cheque bouncing case, the law allows for settlement. This is done through a legal
    Read more

    Precautions to be Taken by Customers to Avoid Cheque Bouncing

    By Nyaaya | 0 comment
    To avoid cheque bouncing, as a customer who is issuing a cheque you should:Ensure that the cheque has CTS 2010 written on it.Preferably use image-friendly coloured inks like blue and black while writi
    Read more

    Precautions to be Taken by Banks when dealing with cheques

    By Nyaaya | 0 comment
    Use CTS Cheques OnlyBanks should use "CTS 2010" cheques which are not only image friendly but also have more security features.Using Stamps on Cheques With CareBanks should exercise care while affixin
    Read more

    Precautions to be Taken by Customers

    By Malavika Rajkumar | 0 comment
    There are certain precautions to be taken by customers when dealing with cheques.Ensure that the cheque has CTS 2010 written on it.Preferably use image-friendly coloured inks like blue and black while
    Read more

    Notice After A Cheque Has Bounced

    By Malavika Rajkumar | 0 comment
    Punishing the Issuer of the ChequeSend a demand noticeIf a cheque that you’ve received as payment has bounced, you must first send a notice to the issuer of the cheque to pay the amount that was due,
    Read more

    Arrest for Cheque Bouncing

    By Malavika Rajkumar | 0 comment
    Cheque bouncing is a criminal offence and you can be arrested by the police. It is important to note that the police cannot arrest you without a warrant.However, in most cheque bouncing cases, a warra
    Read more

    Punishment for Cheque Bouncing Cases

    By Malavika Rajkumar | 0 comment
    Cheque bouncing is both a civil and criminal offence. You can file a civil suit to recover your money as well a criminal complaint to punish the person for bouncing your cheque. The proceedings for bo
    Read more

    Who Can File a Case for Cheque Bouncing

    By Malavika Rajkumar | 0 comment
    You can file a case for cheque bouncing, as a civil or criminal complaint under the law if the following conditions are fulfilled:X owes you some money and issued a cheque to pay it.You presented the
    Read more

    Where to File a Complaint about Cheque Bouncing

    By Malavika Rajkumar | 0 comment
    Complaint about Cheque BouncingComplaint to Recover the Cheque AmountSuch a complaint is a civil complaint. In order to recover your money, you need to file a money suit either in the City Civil Court
    Read more

    Filing a Case Against a Company for Cheque Bouncing

    By Malavika Rajkumar | 0 comment
    When a case of dishonour of cheque is filed against a company then every person who was in charge of the conduct of business of the company, as well as the company will be held guilty of the offence.
    Read more

    Time Period for Filing a Complaint about Cheque Bouncing

    By Malavika Rajkumar | 0 comment
    There is a specified time period for filing a complaint about cheque bouncing. You must file the case in court within one month after the 15 day notice period has expired. The Court will not entertain
    Read more

    Banks Falsely Bouncing Cheques

    By Malavika Rajkumar | 0 comment
     There can be cases of banks falsely bouncing cheques. It is possible that a cheque could be wrongfully dishonoured by the bank. This can happen either due to negligence or mistake on part of the bank
    Read more

    Settlement Out of Court

    By Malavika Rajkumar | 0 comment
     Settlement out of court can happen when a criminal complaint is filed for a cheque bouncing case. The law allows for settlement through a legal concept called compounding of offences.In this process,
    Read more

    Cheque Bouncing

    By Malavika Rajkumar | 0 comment
    One of the ways in which a cheque is said to have been ‘bounced’ or ‘dishonoured‘ is when it is deposited or presented for payment but could not be encashed by the holder of the cheque. This is known
    Read more

    Precautions to be Taken by Banks

    By Malavika Rajkumar | 0 comment
    There are certain precautions to be taken by banks when dealing with cheques.Use CTS Cheques OnlyBanks should use "CTS 2010" cheques which are not only image friendly but also have more security featu
    Read more

    How Cheques Work

    By Malavika Rajkumar | 0 comment
    Let's understand how cheques work. A cheque is a promise made in writing by one person to another to unconditionally pay a specified amount of money. However, you can also write a cheque to yourself.F
    Read more

    Valid Cheques

    By Malavika Rajkumar | 0 comment
    A valid cheque is one that can be presented to the bank in order to receive money from the drawer’s account. The validity of the cheque will depend upon the date it was issued. Once a date has been wr
    Read more

    Crossed Cheque

    By Malavika Rajkumar | 0 comment
    Crossing a cheque means that it cannot be transferred to anyone else. In such cheques, you have to draw two parallel lines on the top left corner of the cheque and you can write the words “Account Pay
    Read more

    Uncrossed Cheque or Open Cheque

    By Malavika Rajkumar | 0 comment
    An uncrossed cheque or an open cheque is a cheque that has not been crossed with two parallel lines on the top left corner. Such cheques can be encashed at any bank. You can collect the money for the
    Read more

    Bearer Cheque

    By Malavika Rajkumar | 0 comment
    If you have a bearer cheque, then you can present it to the bank and get the cash amount written on it. Any person can give the cheque and collect the money written on it.For Example: If Sanjana prese
    Read more

    Order Cheque

    By Malavika Rajkumar | 0 comment
    An order cheque is a cheque where only the person or party in whose name the cheque has been drawn, can withdraw the cash. The person collecting the cheque has to give an identity proof to encash the
    Read more

    Cancelled Cheques

    By Malavika Rajkumar | 0 comment
    If the words “cancelled” has been written on the cheque then, it is known as a cancelled cheque. Usually, the word cancelled is written across the cheque leaf in a big font, so that it is clear to any
    Read more

    Endorsing Cheques

    By Malavika Rajkumar | 1 comment
    Endorsing cheques means that if you have an order cheque then you can endorse it to someone else. Endorsing means the payee can use the same order cheque to pay to someone else (the creditor) by writi
    Read more
    Filter:AllUnanswered
    What is the format in which I should send a notice to the issuer/drawer of the cheque?
    NyaayaNyaaya answered 6 years ago • Cheques
    543 views1 answers0 votes
    If I have filed a cheque bouncing case against someone, can I ask the Court for some interim compensation?
    NyaayaNyaaya answered 6 years ago • Cheques
    553 views1 answers0 votes
    I lost my cheque return memo. What do I do?
    NyaayaNyaaya answered 6 years ago • Cheques
    602 views1 answers0 votes
    I issued a cheque to my landlord at the beginning of the month for rent and when he en-cashed the cheque there was no money in my bank account. Can I be held liable?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    1374 views1 answers0 votes
    Will I receive an acknowledgement for cheque deposited in a bank for collection?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    786 views1 answers0 votes
    Is it possible that the bank can misplace my cheque after I have presented it to them for encashment?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    514 views1 answers0 votes
    Are there any other consequences to dishonor of cheque that I can face in terms of banking privileges with my respective bank?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    501 views1 answers0 votes
    What does “or bearer” on a cheque mean?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    579 views1 answers0 votes
    What does Account Payee on the side corner of the cheque mean?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    541 views1 answers0 votes
    Someone issued a cheque to me but the account was closed before I could encash it. Is this cheque bouncing?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    589 views1 answers0 votes
    How do I know the cheque collection policy of my bank?
    Adrija JayanthyAdrija Jayanthy answered 6 years ago • Cheques
    525 views1 answers0 votes
    महीने की शुरुआत में मैंने किराया देने के लिए अपने मकान मालिक को एक चेक जारी किया था और जब उन्होंने चेक को जमा किया, उस वक्त मेरे बैंक खाते में कोई पैसा नहीं था। क्या मुझे इसके लिए जिम्मेदार ठहराया जा सकता है?
    AvatarSumeysh Srivastava answered 6 years ago • Cheques
    1126 views1 answers0 votes
    क्या चेक के अनादर होने के कोई अन्य परिणाम हैं जिसका मैं, अपने संबंधित बैंक के साथ बैंकिंग विशेषाधिकारों के संदर्भ में, सामना कर सकता हूं?
    AvatarSumeysh Srivastava answered 6 years ago • Cheques
    1270 views1 answers-1 votes
    उस नोटिस का फॉरमैट क्या है जिसमें मुझे चेक जारीकर्ता/खाताधारक को नोटिस भेजना चाहिए?
    AvatarSumeysh Srivastava answered 6 years ago • Cheques
    1073 views1 answers0 votes
    अगर मैंने किसी के खिलाफ चेक बाउंसिंग का मामला दायर किया है, तो क्या मैं कोर्ट से कुछ अंतरिम मुआवजा मांग सकता हूं?
    AvatarSumeysh Srivastava answered 6 years ago • Cheques
    1123 views1 answers0 votes
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    Nyaaya - India's Laws Explained
    • Explainers
      • Constitution
        • Fundamental Rights
          • Right to Education
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        • Healthcare for LGBTQ+ Persons
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      • Government and Politics
        • Unlawful Activities (Prevention) Act
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        • Campaigning and Elections
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      • Health and Environment
        • Water Pollution
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        • Patient Rights
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      • Marriage and Divorce
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        • Hindu Marriage
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        • Muslim Marriage
      • Media and Communication
        • Censorship
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      • Money and Property
        • Land and Property Disputes
        • Using Your Property Effectively (Buying & Selling)
        • Consumer Rights
        • Cheques
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        • Rent
        • Theft
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      • Police and Courts
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        • Contempt of Court
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    Nyaaya

    Hey if you have any comments please add them below the explainer. If you have any questions on the law, you can use the ASK NYAAYA tab to submit them. This will help us improve our content based on your contribution. Thanks!

    Stay updated with Nyaaya, connect with us through a newsletter, whatsapp, and whatsapp हिंदी

    Andhra Pradesh

    Girl Child Protection Scheme

    The Girl Child Protection Scheme is aimed at preventing gender discrimination by empowering and protecting rights of girl children through direct investment from the State Government. It provides a number of incentives to promote the empowerment of the girl child:

    • In case of a single girl child she is entitled to receive Rs.1.00 lakh after completion of 20 years of age.
    • In case of two girl children, both of them are entitled to receive Rs.30,000/- each, after completion of 20 years age.
    • Both “single girl child” and “two girl children” are entitled to receive Rs1,200/- per annum as scholarship from 9th class to 12th class (including ITI course) during their period of study, as a benefit under the scheme.

    More information on this scheme can be found here.

    Bangaru Thalli Scheme

    Bangaru Thalli is a welfare scheme for girls launched by Government of Andhra Pradesh. The scheme supports the family of a girl from her birth till her graduation. All the Below Poverty Line white card holders are eligible for the scheme.

    Details of the scheme can be found in the Andhra Pradesh Bangaru Thalli Girl Child Promotion and Empowerment Act, 2013.

    Assam

    Manjoni Scheme

    Under this scheme, Rs. 5000 is deposited by the State Government at the time of the birth of a girl child and the girl would get the matured value of this fixed deposit when she turns 18. In order to be eligible for this scheme, the girl child must be born in a Government hospital and the family should have adopted the two child norm.

    More information on this scheme can be found here.

    Bihar

    Mukhyamantri Kanya Suraksha Yojana

    Under this scheme the girl child gets financial assistance from her birth till graduation amounting to a total of Rs. 51,000. The funds will be dispersed over a period of time upon attaining a certain age and completion of certain prerequisites:

    • At birth: Rs 2000
    • Age 1 upon issuance of Aadhar card: Rs. 1000
    • Age 2: Rs. 2000
    • Passing 12th grade: Rs. 10,000
    • Graduation: Rs. 25,000

    These benefits are available to only 2 girls in a family and residents of Bihar. Girls coming from financially weaker backgrounds will be given priority. To apply to this scheme, the parents can visit the anganwadi centres, fill the application form and submit the necessary documents to the anganwadi workers.

    Goa

    MAMTA scheme for girl child

    With a view of improving the female sex ratio of the State, under this scheme an amount of Rs. 10000/- will be paid to all the mothers who deliver a girl child  (maximum 02 deliveries) in a registered medical institution. Eligible mothers can apply to the Child Development Project Officer through the local Anganwadi Centre with a copy of the Birth Certificate within 45 days from delivering the child. The benefits are directly credited to the declared Bank Account.

    There is an online application for this scheme. More information on this scheme can be found here.

    Gujarat

    Kunwarbai Nu Mameru Yojana

    The Ministry of Women and Child Development of Gujarat has launched a scheme called Kunwarbai Nu Mameru Yojana that offers financial assistance of Rs. 10,000 to only one girl of a family. However, this scheme has been started specifically for the welfare of Scheduled Tribes and Scheduled Castes girls. Only those with an annual income limit of Rs. 1,20,000 (Rural areas) and Rs.1,50,000 (Urban areas) are eligible for this scheme.

    More information on this scheme can be found here.

    Haryana

    Laldi Scheme

    The Ladli Scheme of Haryana is meant to provide benefits to biological parents who have no son (biological or adopted) but only daughters. This scheme is only available to those who are either domicile of Haryana or working for the State government, whose gross annual income of the family does not exceed Rs. 2,00,000.

    The pattern of this scheme is similar to the Old Age Samman Allowance scheme for the families having only girl children. The enrolment of families under this scheme commences from the 45th birthday of the mother or the father whoever is older of the two till their 60th birthday i.e. for 15 years (Thereafter they will be eligible for Old Age Samman Allowance). The rate of allowance provided is Rs. 1,800 per month.

    More information on this scheme can be found here.

    Himachal Pradesh

    Indira Gandhi Balika Suraksha Yojana

    Under this scheme, the families adopting family planning methods after the birth of the first female child will be given a sum of Rs. 25,000 and those adopting family planning methods after the birth of two female children will be given a cash of Rs. 20,000.

    The health department of the Himachal Pradesh government also provides free of cost transportation either through taxi or ambulance for carrying pregnant women to the nearest hospital for delivery.

    Beti Hai Anmol Yojana

    Under this scheme, for all the families lying below the poverty line in Himachal and having one or two girls, a sum of Rs. 5100 will be deposited in the name of girls at the time of their birth. Moreover, to help in the education of such girls, scholarships ranging from Rs. 300 to Rs. 1500 will be given to them from class I to class XII.

    More information on this scheme can be found here.

    Jammu and Kashmir

    Ladli Beti Scheme

    Under this scheme, financial assistance of Rs. 1000 per month is made by the Government from the birth of the girl child / account opening date for the next 14 years. For this, zero balance accounts have already been opened in the Jammu and Kashmir Bank in respective localities. This is only applicable to girls born on or after 1st April 2015, and whose parental income is less than Rs. 75,000 per annum.

    More information on this scheme can be found here.

    Jharkhand

    Ladli Lakshmi Yojana

    Under this scheme, the State government offers a girl child from families below poverty line benefits of Rs. 1,80,600. An amount of Rs. 6,000 will be deposited annually into the girls account till she turns 5 years old. Further amounts will be added upon completion of higher education, marriage and so on, along with monthly allowances of Rs. 200 for girl students.

    Karnataka

    Karnataka Bhagyashree Scheme

    With the idea of raising the status of girl children and promoting their birth in the country, the Karnataka government has come up with the Karnataka Bhagyashree Scheme. The scheme provides financial assistance to the girl child in families that lie below the poverty line through her mother or father who is subject to the fulfilment of certain conditions.

    The government of Karnataka offers the following benefits to the eligible candidates of this scheme-

    • The girl child gets a health insurance cover of upto Rs. 25,000 per month
    • The child gets an annual scholarship of Rs. 300 to Rs. 1,000, depending upon her age upto 10th standard
    • The parents get Rs. 1 lakh in case of accident and Rs. 42,500 in case of natural death of the girl child.
    • On completing 18 years of age, the parents of the girl child would be paid Rs. 34,751.

    Along with this, there are certain interim payments such as annual scholarships and insurance benefits that the beneficiary can avail upon continued fulfillment of the eligibility criteria. The grant of such facilities promotes the birth of girl children in economically weaker families and raises their status within the society.

    Kerala

    Education Assistance to Women Headed Families

    The scheme proposes to extend a helping hand to these families by way of providing financial assistance to the education of children by the State government.

    More information on this scheme can be found here.

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