Cheque Bounce in Nepal: Your Remedy and the Procedure

When a cheque is dishonoured for insufficient funds, Nepali law gives the holder two distinct routes, and they are not mutually exclusive. Understanding both is the difference between recovering your money and merely venting frustration.

The criminal complaint

Issuing a cheque that bounces for want of funds is an offence under the National Penal Code. The holder can file a complaint, and the threat of criminal liability is often what brings a reluctant payer to the table. Timing matters: there are limitation periods, and a delayed complaint can lose its force.

Recovering the money

A criminal case punishes the conduct; it does not automatically put the money in your account. To recover the sum, the holder pursues the debt, often in the same matter or through a civil claim. The clearest path is to obtain the bank’s dishonour memo, send a formal demand, and act within the limitation window.

Before you accept a cheque

Prevention is cheaper than remedy. For significant sums, confirm the cheque is good before parting with goods, keep the underlying agreement in writing, and never let the limitation period quietly expire while waiting for a promise to be kept.