What Happens if Your Cheque Bounces?
& Infosys crisis explained
Hope your week’s off to a smooth start - because the news isn’t! From market dips to legal drama, today’s updates pack a punch.
And hey, ever wondered why a cheque bounces and what chaos it can bring? Stick around for the lowdown - you might save yourself from some serious trouble!
Ready? Let’s dive in👇
📌 Top Headlines of the Day
Honda Motor aims to capture 50% of the global motorcycle market
Nifty sees its steepest decline since October 2 in a decade; 16 stocks plunge over 20%
Infosys co-founder Kris Gopalakrishnan named in SC/ST Act case in Karnataka
Cheque Bounce - A mishap
A cheque bounce, or 'dishonour of cheque,' happens when your bank says, “Nope, we can’t process this.” It could be due to insufficient funds, exceeding your account’s withdrawal limit, or other technical issues.
It’s all covered under the Negotiable Instruments Act (NI Act), 1881, which aims to prevent people from issuing cheques they can’t honour.
But why do cheques bounce?
You don’t have enough money in your account - simple and straightforward.
The cheque amount is more than your bank allows you to withdraw.
Your signature doesn’t match the one your bank has on file, or the cheque number doesn’t tally. This is a fraud prevention measure.
Cheques are valid for only three months. After that, or if they’re damaged, they’re as good as scrap paper.
You may have instructed the bank to halt payment, often due to disputes or suspected fraud.
And what are the consequences?
Here’s where things get serious. Under Section 138 of the NI Act, cheque bounce is a criminal offence. You could face:
Jail time of up to two years.
A fine up to double the cheque amount.
Or, in some cases, both.
If the matter goes to court, bail might be an option before conviction, but it gets trickier afterward.
Why should you care?
A cheque bounce isn’t just embarrassing - it’s expensive:
Banks will hit you with penalties ranging from ₹50 to ₹750.
Your credit score takes a hit, making future loans harder to get.
If you don’t settle the amount quickly, the payee can even demand interest.
How to avoid it?
Keep your finances in check (pun intended):
Always ensure sufficient funds.
Double-check details like dates and signatures.
Avoid overwriting - messy cheques often get rejected.
If funds are tight, talk to the payee and sort it out instead of issuing a dud cheque.
Why is Infosys in danger?
A case has been registered against Senapathy Kris Gopalakrishnan, co-founder of Infosys, and 17 members of the Indian Institute of Science (IISc).
What’s the issue, you ask?
It’s tied to a serious complaint under the SC/ST Act.The complainant, Professor D. Sanna Durgappa, who was with IISc’s Centre for Sustainable Technologies, has alleged something quite alarming.
According to him, back in 2014, he was dismissed from his position because of a fake honeytrap case that was fabricated against him.
On top of that, he claims he faced casteist abuse and threats during this ordeal.
A case was officially registered on January 27, and now, the police are looking into these serious allegations.
The list of accused is long and includes prominent names like Govindan Rangarajan, Sridhar Warrier, and several other IISc members. And yes, Kris Gopalakrishnan, who serves as a member of the IISc Board of Trustees, is also on this list.
It’s worth noting, though, that the Supreme Court has previously ruled that not every insult or disagreement involving someone from an SC/ST community falls under the SC/ST Act. The context and intent matter. Whether this case fits into that framework is something the investigation will have to uncover.
So, that’s it for today. If you enjoyed this edition, subscribe to hear from us every day!
See ya 👋
