Finance Minister Bishnu Prasad Paudel announced that a bill to amend the Banking Offense and Punishment Act-2064 BS has been registered in Parliament. The bill aims to make investigations, prosecutions, and punishments related to banking offenses, including cheque bounce cases, more systematic and effective.

Speaking at a meeting of the Finance Committee of the House of Representatives (HoR) on Sunday, the finance minister noted that reports of banking fraud, including cheque fraud, are on the rise. He emphasized that the bill prioritizes fines in cases of banking fraud.

During the meeting, lawmaker Dr. Swarnim Wagle proposed prioritizing fines over jail sentences for banking fraud, citing global practices and stressing the need to expedite the bill’s approval. Another lawmaker, Padam Giri, criticized the Parliament's negligible legislative role, leading to numerous bills being stalled in the committee.

The bill was initially registered by former Finance Minister Dr. Prakash Sharan Mahat on September 2, 2023. The government recognized the need to amend the act due to the distinct legal requirements for cheque bounce cases, a Supreme Court order to maintain uniformity in the legal approach to these cases, and an assessment by the Office of the Attorney General.

The bill prohibits account holders from issuing cheques for amounts exceeding their account balance. If the required amount is not deposited within the 30-day period, the cheque bounce procedures will be initiated.

Under the existing Banking Offense and Punishment Act, penalties include fines and imprisonment of up to three months for bounced cheques. However, the proposed bill introduces a provision requiring the issuer of a bounced cheque to pay a fine of five percent of the due amount to the cheque bearer, in addition to imprisonment based on the cheque amount. Specifically, imprisonment of up to one month is proposed for amounts up to Rs 500,000, up to six months for amounts ranging from Rs 1 million to Rs 5 million, and up to two years for amounts exceeding Rs 5 million.

The bill also proposes allowing the registration of a case at the respective District Court within three months if a cheque bounce is proven. -- RSS