Cheque bounce is a problem that happens when there isn't enough money in the account to cover the amount owing. Prompt action must be taken to retrieve the money. First, a letter demanding payment is delivered to the drawer; otherwise, legal action would be taken. On the letter, a prompt settlement is occasionally made. The Negotiable Instruments Act defines check bounce as a serious violation that carries a jail sentence and a fine. To safeguard his rights under the Negotiable Instruments Act, the cheque's drawer must present the check within 30 days after the day it was dishonoured. A check is a "bill of exchange" that is cashable immediately. The person who writes the check is known as the "drawer," while the person to whom it is written is known as the "drawee." Almost all transactions involve the use of checks, including loan repayment, wage payment, payment of bills and fees, etc. Banks handle and pass the vast majority of checks every day. The purpose of issuing checks is to obtain documentation of payment. Yet, a lot of individuals continue to rely on checks as a secure form of payment. Therefore, in order to prevent misuse, it is usually desirable to provide crossed "Account Payee Only" checks.
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