Question

As per RBI guidelines, what is the penalty for a person whose cheque is dishonoured for insufficiency of funds under the Negotiable Instruments Act?

Q: Answer-As per RBI guidelines, what is the penalty for a person whose cheque is dishonoured for insufficienc...

Section 138 of the Negotiable Instruments Act, 1881, states that dishonour of cheque due to insufficient funds can attract imprisonment up to 2 years or fine up to twice the cheque amount or both.

A Fine up to ₹25,000 only

B Imprisonment up to 1 year or fine only

C Imprisonment up to 2 years or fine up to twice the cheque amount or both

D Imprisonment up to 6 months only

E Ban from holding a bank account for 5 years

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As per RBI guidelines, what is the penalty for a person whose cheque is dishonoured for insufficiency of funds under the Negotiable Instruments Act?

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