Cheque Bounce Cost Calculator
Calculate bank penalties, GST, and legal risks for cheque bounce in India. Understand your total potential loss and legal exposure.
Cheque Bounce is a Criminal Offense in India
Cheque Bounce Details
Bank penalties vary. Private banks generally have higher charges than public sector banks.
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Higher cheque amounts may increase legal risk and potential penalties.
Note: This calculator provides estimates based on typical bank charges. Actual penalties may vary by bank branch and specific circumstances. Legal risks increase with cheque amount and frequency of bounce incidents.
Legal Disclaimer: Cheque bounce is a criminal offense under Section 138 of the Negotiable Instruments Act, 1881. Penalties include fines up to twice the cheque amount and/or imprisonment up to 2 years. This calculator provides estimates only and does not constitute legal advice.
Bounce Cost Breakdown
Bank Penalty Charges
₹ 0
GST (18%) on Penalty
₹ 0
Total Immediate Cost
₹ 0
Legal Notice Risk Assessment
Enter cheque details to assess legal risk. Higher amounts increase the likelihood of legal action.
MEDIUM RISK
Tip: To avoid legal action, settle the amount with the payee immediately after a bounce and obtain a written settlement confirmation. Consider issuing a new cheque only after ensuring sufficient funds.
Bank Penalty Comparison
Compare cheque bounce penalties across major Indian banks (for insufficient funds)
SBI (Public Sector)
₹ 300 + GST
Lower penalties, strict follow-up
HDFC Bank
₹ 500 + GST
Higher penalties, plus communication charges
ICICI Bank
₹ 450 + GST
Moderate penalties, SMS alerts included
Axis Bank
₹ 500 + GST
Similar to HDFC, with account restrictions
Important: Signature mismatch penalties are typically 20-30% lower than insufficient funds penalties. Some banks may also impose additional charges for repeated bounce incidents or temporarily freeze account cheque book facilities.