Penalty for bounced cheques set at 5% in legal cases

KATHMANDU: The Legislation Management Committee has agreed that if a bounced cheque case proceeds to court, a penalty of 5% of the cheque amount will be imposed.

During the committee meeting under the National Assembly, Chairperson Tulsi Kumari Dahal shared this information.

She stated that if a person issues a cheque without sufficient funds, it must be settled within 45 days, as per the proposed bill.

If the check remains unsettled even after coordination and mediation between both parties, the matter can proceed to court under the Civil Code.

Chairperson Dahal further stated that knowingly issuing a cheque without sufficient funds will be considered an act of fraud under the new provisions.