KATHMANDU, Feb 11: The House of Representatives has passed the Banking Offences and Punishments (Second Amendment) Act, 2081, introducing tougher penalties for cheque dishonour cases.
The revised law, now in effect, mandates offenders to repay the dishonoured amount and face jail time ranging from three months to two years, depending on the cheque's value. Additionally, a five percent fine will be imposed.
Under the new provisions, individuals issuing bad cheques for amounts up to Rs 500,000 face one month in jail, while those involved in dishonouring cheques exceeding Rs 5 million could be imprisoned for up to two years. If the offender is a bank chairman, director, or CEO, an extra year of imprisonment can be added to the sentence.
The law requires complaints to be filed within three months of cheque dishonour confirmation, with cases to be taken to the concerned district court within that period. However, it also allows for mediation if both parties agree to a settlement.
Similarly, the Act redefines cooperative banks, removing them from Nepal Rastra Bank's direct oversight. While cooperative banks will now fall under the Cooperative Act, 2074, they must still obtain approval from the central bank for operations.