KATHMANDU: Finance Minister Bishnu Prasad Paudel has announced that a Bill to amend the Banking Offense and Punishment Act-2064 BS has been registered in Parliament.
The Bill aims to enhance the investigation, prosecution, and punishment processes for banking offenses, including cases of cheque bounce.
Speaking at a meeting of the Finance Committee of the House of Representatives (HoR) today, the Finance Minister noted an increase in reports of banking fraud, including cheque bounce cases.
He emphasized that the Bill prioritizes imposing fines in such cases to make legal action more systematic and effective.
During the meeting, lawmaker Dr. Swarnim Wagle suggested prioritizing fines over jail sentences for banking fraud, citing global practices and stressing the need to pass the Bill swiftly.
Another lawmaker, Padam Giri, criticized the parliament’s minimal legislative role, which has led to numerous bills being delayed in the Committee.
The Bill was originally registered by the then-Finance Minister, Dr. Prakash Sharan Mahat, on September 2, 2023.
The government recognized the need to amend the Act to address different legal treatments for cheque bounce cases, following an order from the Supreme Court to maintain uniformity in legal approaches and an assessment by the Office of the Attorney General.
The proposed Bill stipulates that if an account holder does not have sufficient funds to cover a cheque, the cheque should be returned to the bearer.
The respective bank must notify the account holder to ensure that sufficient funds are available within 30 days to avoid it being considered a cheque bounce.
The Bill further prohibits account holders from issuing cheques that exceed their available balance.
If the required amount is not deposited within 30 days, procedures to establish a cheque bounce case will be initiated.
The existing Banking Offense and Punishment Act provides for a fine and imprisonment of up to three months if a cheque bounces.
However, the proposed Bill includes a provision requiring the issuer of a bounced cheque to pay a fine of five percent of the due amount to the cheque bearer, along with imprisonment based on the amount mentioned in the cheque.
For amounts up to Rs 500,000, imprisonment of up to one month is proposed, up to six months for amounts between Rs 1 million and Rs 5 million, and up to two years for amounts over Rs 5 million.
The Bill also proposes that a case of cheque bounce can be registered at the respective District Court within three months if the offense is proven.
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