Cabinet Approves Amendment To N I Act On Cheque Bounce Cases

An amendment to the Negotiable Instrument Act will allow a court to order for payment of an interim compensation to those whose cheques have bounced due to dishonouring parties, a move aimed at promoting a less cash economy.

The Cabinet on Friday approved an amendment to a current law to allow for payment of an interim compensation in cheque dishonour cases with a view not to allow unscrupulous elements holding payments, pending long trial, sources said.

An amendment to the Negotiable Instrument Act will allow a court to order for payment of an interim compensation to those whose cheques have bounced due to dishonouring parties, a move aimed at promoting a less cash economy.

The amendment is likely to be introduced in the ongoing winter session of Parliament.

Law Minister Ravi Shankar Prasad, while briefing the media about the Cabinet’s decisions, said amendment to Negotiable Instruments Act, 1881 has been approved.

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