NEW DELHI: The finance ministry is mulling several steps like dipping into other accounts of a cheque issuer and prohibition of opening of new accounts of offenders to effectively deal with cheque bounce cases.
These suggestions were made at a high-level meeting recently called by the ministry to deal with the rising incidence of cheque bounce cases that are clogging the legal system. The other suggestions were treating cheque bounce as default of loan and thus reporting it to credit information companies for necessary downgrade of score, the sources said, adding a proper legal view would be taken before these proposals are accepted.
If these suggestions are implemented, it would help enforce cheque honouring by the payer without the matter going to court and compel him or her to make payment by creating a deterrent through technology. These measures would help promote ease of doing business and dissuade people from wilfully indulging in issuance of cheques even though their accounts have insufficient funds.
These suggestions were made at a high-level meeting recently called by the ministry to deal with the rising incidence of cheque bounce cases that are clogging the legal system. The other suggestions were treating cheque bounce as default of loan and thus reporting it to credit information companies for necessary downgrade of score, the sources said, adding a proper legal view would be taken before these proposals are accepted.
If these suggestions are implemented, it would help enforce cheque honouring by the payer without the matter going to court and compel him or her to make payment by creating a deterrent through technology. These measures would help promote ease of doing business and dissuade people from wilfully indulging in issuance of cheques even though their accounts have insufficient funds.
The proposed steps could be implemented through the integration of data across the banks, sources said. Standard operating procedure for auto-debit and other suggestions will be needed.
The Supreme Court had constituted a committee to suggest steps to be taken for early disposal of about 35 lakh pending cases across the country.