How to File a Cheque Bounce Case in Nepal?

As the number of cheque transactions has increased, so has the number of cheque-related crimes or dishonesty. A cheque bounce or dishonour of cheque occurs when there is no money or insufficient funds in an account and someone writes a cheque that the bank does not pay. Even if the cheque is bounced intentionally or unintentionally, it is still a crime in the eyes of the law.The Banking Offence and Punishment Act of 2064 has been enacted to control and manage cheque-related crimes.

A law has been enacted to control and manage check-related crimes. On July 10, 2025, the method of cheque bounce, i.e. cheque bounce certified process 2024, was issued and presented.

The bank that issued the cheque now issues a cheque bounce certificate within three days of the 45-day period expiring.

You should know the procedure for registering a complaint.

The Most Common Causes of a Cheque Bounce

There can be a variety of reasons for a cheque to be dishonored or a cheque to bounce. Let us take a look at a few of them:

Insufficient Balance in the Account

One of the most common causes of cheque bounces is a lack of funds in the drawer’s account. For example, if you receive a cheque from someone whose account balance is less than the amount stated on the cheque, the Bank will not initiate the transaction. It will now obstruct payment and dishonour the cheque.

A problem with the cheque’s date

The cheque’s date is extremely important. Any inaccuracy or illegibility in the date can result in a bounced cheque.

Signature Mismatch

Each drawer must ensure that his signature on the cheque matches the signature in the bank records, or he will face serious consequences.

Amount Difference in Numbers and Words

 If the payable amount in numbers and words differs, the bank will return the cheque. Furthermore, the same action is taken if the amount in the words section contains some numbers or vice versa.

Resetting or Scrawling on the Cheque

While mistakes are unavoidable when framing a cheque, banks will not accept overwriting or scribbling and will immediately dishonour the cheque.

What is the legal process for filing a lawsuit?

On July 10, 2025, Nepal Rastra Bank introduced the Cheque Bounce Certified Procedure 2024 and explained how to execute it.
First,

Deposit the cheque in your bank.

First and foremost, if someone offers you a cheque, you deposit it in your bank.

If the amount specified in the cheque is not in the account and the cheque is returned unpaid (for reasons such as “insufficient funds”, “account closed”, etc.), your bank will issue a Cheque Return Memo stating the cause for dishonour.

Submit to the cheque-issuing bank

Following receipt of the Cheque Return Memo, the bank that issued the cheque shall send a cheque bounce notice to the person (drawer) who issued the cheque.

You should go to the bank and request that the cheque be verified as having bounced.

The cheque issuing bank shall send a cheque bounce notice to the person (drawer) who issued the cheque within 45 days after depositing the cheque’s amount into the account.

The law does not define how the bank will send the cheque bounce notice.

The bank will issue a message to the account holder by post or email to deposit funds. The information transmitted by the bank must be kept secure.

Wait 45 days.

If the drawer who issued the cheque does not deposit the money within 45 days of your deposit at the issuing bank, the bank will issue a Bounce certified certificate within three days.

That is, you must wait 45 days plus 3 days to receive the bounce certificate, for a total of 48 days.

Cheque Bounce Certified Certificate

If the drawer fails to deposit the funds within 45 days of depositing the cheque with the issuing bank, the bank must provide a Bounce certified certificate within three days.

Cheque Bounce certified certificate. If no payment is made after 45 days: After receiving the Cheque Bounce certified certificate from the bank that issued the cheque.

You can submit a FIR to the police. This must be completed within one year of the cheque Bounce.

The complaint is filed with the police, and you submit a cheque for payment.

Is it necessary to file a FIR with the police?

If a cheque is issued when there is no money in the account, the cheque must be bounced and wait for 48 hours and the bounce letter must be attached to the written FIR application and filed as soon as possible at the nearest police station.

The court then issues the procedure: After you file a cheque bounce case, the government attorney registers the case with the high court. Before granting bail, the high court hears the complainant’s arguments.

The Government Attorney launches an investigation

When a petition or complaint is filed with the nearest police station, the case is assigned to a government attorney. The government’s attorney will draft a charge sheet and present it before the district court.

The court then issues the following procedure: After you file a cheque bounce case, the government attorney registers it with the District Court.

Before granting bail, the District Court considers the complainant’s arguments.

What is the Penalty?

A FIR for criminal charges may be filed under the Banking Offence and Punishment Act 2064 (2008). Section 15(1) of the Banking Offence and Punishment Act of 2064(2008) According to this law, a FIR can be filed with the police within one year of the offence being found or one year after the cheque is bounced.

What are the consequences of a banking-related crime case filed in court?

From July 10, 2025, police will investigate all cheque bounce cases.

Currently, a 5% fine and imprisonment are enforced for cheque bounces, depending on the amount of the cheque. A 5% penalty can be paid for cheque bounces, even if the court has determined on an older dates.

Punishment in Cheque Bounce

S.N	Amount of Cheque	Punishment	Amount	Fine
1	Cheque amount up to Fifteen Lakh	One month Imprisonment	Must pay cheque amount to the holder	Five per cent of the cheque amount
2	Cheque amount fro fifteen lakh up to fifty lakh	One month to three month imprisonment	Must pay cheque amount to the holder	pay five percent of the cheque amount
3	Cheque amount from fifty lack to one crore	Three month to one year imprisionment	Must pay cheque amount to the holder	pay five percent of cheque amount
4	cheque amount from one crore rupees to Ten crore	One year to two year imprisonment	Must pay cheque amount to the holder	Pay five percent of cheque amount
5	Cheque more than Ten crore	Two year to four year imprisonment	Must pay cheque amount to the holder	Pay five percent of cheque amount

If the cheque is dishonoured when presented to the bank, she or he is obligated to pay the amount stated in the cheque as well as interest. The bank does not pay a cheque that is intentionally issued or provided to a person who knows there are no deposits in the account.

The Supreme Court provides important clarification and  establishes a principle in cases of cheque bounce. If the cheque bounce case is civil in nature, it is filed as a civil case.
Nepal Government Vs. Gita Stapit N.K. P Part 59 Number 11 Decision Number 9899.

The defendant Gita Stapit, a Jyoti Bikash Bank account holder, issued a cheque for an amount greater than what she had in the bank, and the cheque was dishonored. The facts are undeniably true.

According to Section 107(a) of the Negotiable Instruments Act of 2034 (1977), whoever issues such cheque is entitled to pay the amount stated in the cheque plus interest, and the individual who issues the cheque is penalized, and the individual who is the victim of such actions is entitled to payment plus interest from such individual.

Section 107(a) of the Negotiable Instruments Act 2034 (1977) governs the defendant’s action. No relief is provided to victims of banking-related offence under the Banking Offence and Punishment Act of 2064 (2008).

The Civil Code’s fraud provisions apply to similar types of cheque dishonor cases. If the defendant is punished for the same wrongful act in another case in the name of providing relief to the victim, the principle of double jeopardy is violated.

Please do not hesitate to contact us if you require assistance with a cheque bounce case.