The payer is responsible for paying cheque bounce charges.
When a cheque is bounced, it means the bank cannot process it due to insufficient funds in the account. This results in a penalty levied by the bank, known as a cheque bounce charge. This charge is usually imposed on the person who issued the cheque, not the recipient.
The exact amount of the bounce charge can vary depending on the bank and the amount of the cheque. However, it is typically a fixed amount plus a percentage of the cheque value.
Here are some examples:
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Scenario 1: A person issues a cheque for ₹10,000, but the account has only ₹5,000. The cheque bounces. The bank may charge a fee of ₹500 plus 2% of the cheque value, resulting in a total charge of ₹700.
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Scenario 2: A company issues a cheque for ₹1,00,000, but the account has insufficient funds. The bank may charge a fee of ₹1,000 plus 1% of the cheque value, resulting in a total charge of ₹2,000.
It is important to remember that cheque bounce charges are not negotiable and must be paid by the person who issued the cheque.
To avoid cheque bounce charges, it is crucial to ensure sufficient funds in the account before issuing a cheque.
