KATHMANDU: The Finance Committee has approved the Bill to revise the Banking Offence and Punishment Act-2064 BS (2008) with several amendments.
Committee President Santosh Chalise confirmed that the Bill, which now includes updated provisions, was passed in today’s meeting.
The revised Bill stipulates that for a cheque bounce involving amounts over Rs 100 million, imprisonment of two to four years will be enforced.
Previously, the Committee had agreed on different penalties based on cheque bounce amounts: one month for up to Rs 1.5 million, one to three months for amounts between Rs 1.5 million and Rs 50 million, three months to one year for amounts from Rs 50 million to Rs 10 million, and up to a year for amounts exceeding Rs 10 million.
However, concerns raised by some lawmakers regarding longer imprisonment periods for cheque bounces above Rs 10 million were addressed in today’s meeting.
The Council of Ministers had approved the draft of this Bill on August 8, 2023, and it was subsequently registered in Parliament by then Finance Minister Dr. Prakash Sharan Mahat on September 2 of the same year.
The need for amending the Act was driven by the necessity for varied legal treatment of cheque bounce cases, a Supreme Court order for uniformity in legal approach, and recommendations from the Office of the Attorney General.
The Bill requires account holders to ensure sufficient funds are available before issuing a cheque.
If there are insufficient funds, the cheque must be returned to the bearer. The Bill stipulates that if the bearer wishes to claim a cheque bounce, the bank must inform the account holder to deposit the required amount within 30 days.
If the amount is not deposited within this period and the bearer presents the cheque again, the bank must return the cheque within three days, officially marking it as a case of cheque bounce.
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