New Delhi, Nov 26: Parliament today approved a bill providing stringent penalties, including imprisonment upto two years, for bouncing of cheques with the Rajya Sabha passing the measure with a voice vote. The Negotiable Instrument (Amendment and Miscellaneous Provisions) Bill, 2002, was passed with finance minister Jaswant Singh Saying the Bill would provide stringent punishment for those issuing cheques without requisite funds in the their bank account.
He, however, said the issue of frauds and related crimes would be dealt with under the Indian penal code and not under the Bill.
Singh said the Bill would substantially reduce the time taken to deal with outstation cheques due to the provision of electronic transfer facility.
The Bill introduced in the Monsoon Session of Parliament was aimed at "early disposal of cases relating to dishonour of cheques, enhancing punishment for offenders, introducing electronic image of a truncated cheque and a cheque in the electronic form as well as exempting an official nominee director from prosecution under the Negotiable Instruments Act, 1881." The Bill has already been passed by Lok Sabha.
Bureau Report