House panel okays up to two years sentence in check dishonor cases

KATHMANDU: Those found guilty in check dishonor cases will now face imprisonment ranging from one month to two years.

Members of the Finance Committee of the House of Representatives reached an agreement on the quantum of punishment in check dishonor cases following clause-wise discussion on the Banking Offence and Punishment Act (Second Amendment) Bill on Sunday.

After the meeting, committee chair Santosh Chalise announced that the provision for a 5% fine in addition to the prison sentence of one month to two years for proven cases of check dishonor has been unanimously approved. “We have reached a consensus on the sentence of up to one month for checks up to Rs 1.5 million, three months for checks up to Rs 5 million, one year for checks up to Rs 10 million and two-year for checks above Rs 10 million,” Chalise added.

Deputy Prime Minister and Finance Minister Bishnu Poudel said that the government would accept the conclusions reached after clause-wise discussions.

Stating that the cases of check dishonor are on the rise, Paudel said legal penalties should be introduced to address this issue with punishments proportional to the severity of the offense.