On July 10, 2025, Nepal Rastra Bank introduced the Check Bounce Certified Procedure 2024, outlining the steps for both performing and obtaining a certified check bounce. Since our clients have been asking us how to bounce checks, we have now started this blog.
Deposit a cheque in your bank account.
- Initially, you deposit the cheque in your bank if someone gives it to you.
- Should the amount indicated on the cheque not be in the account, a cheque return memo will be sent to you.
- For reasons such as “insufficient funds,” “account closed,” etc., if a cheque is returned unpaid,
- Your bank will provide a Cheque Return Memo that details the reason why the cheque was dishonoured.
- The payee should seek official confirmation of the dishonour from the bank that issued the cheque after getting a Cheque Return Memo.
- The bank then notifies the cheque issuer that the cheque has bounced and requests that they deposit the money within 45 days.
- Within 45 days after receiving the check, the bank must send a check bounce notice to the person (drawer) who issued it, requesting that they deposit the check’s value into their account.
- The law doesn’t define how the bank will transmit the cheque bounce notice. The bank sends a notice by mail or email to deposit the funds into the account.
- The information transmitted via the bank must be kept secure.
The notice has to include:
- Original cheque and return memo must be submitted.
- Inform the recipient that the cheque was not honoured.
- Deposit the cheque amount within 45 days of receipt of notice.
- The drawer has 45 days from the receipt of the notice to pay.
- If they pay within 45 days, the case is settled.
Once the drawer is advised of the dishonoured cheque and given a 45-day period to deposit cash, the following procedures occur if payment is not received:
Bank Certification
If the drawer fails to deposit the cash within 45 days, the bank must publicly certify the cheque as dishonoured and restore it to the holder within three days.
Total Waiting Period
This means the payee will have to wait 45 days for the drawer to pay plus an additional 3 days for the bank to validate the bounce, for a total of 48 days before the certificate is issued.
The certified certificate from Check Bounce should have the following information.
- The cheque number that was returned
- The name of the person who issued the cheque or the drawee
- The name of the business and the individual (drawer) who wrote the cheque
- The amount on the cheque
- Date of cheque issue
- Filing a complaint with the police
If no payment is received within 45 days, obtain a Cheque Bounce certified certificate from the bank that issued the cheque.
Filing A Complaint in Police?
You are allowed to file a criminal complaint. This must be completed within one year of the cheque bouncing. The complaint is filed with the police, and you include a cheque for payment.
- You can file a FIR with the police.
- This must be completed within one year of the cheque Bounce.
- The complaint is filed with the police, and you submit a cheque for payment.
Questions client have;
How to bounce a cooperative cheque?
To have a cheque issued by a cooperative bounced, present the cheque to the cooperative. The cooperative will then send a cheque bounce notification to the person (drawer) who issued the cheque, requesting that the cheque’s value be deposited into their account within 45 days.
If you are interested to learn about the current cheque bounce law in Nepal then please contact us.
