Centre eyes decriminalising cheque bounce, lesser financial offences; seeks public opinion

The government is looking to reclassify several offences under financial sector laws, including the bouncing of cheques, as civil offences rather than criminal ones to improve the ease of doing business and unclog the courts. These will then be punishable only by monetary penalties, not jail time. The Department of Financial Services has sought public comments on decriminalising 39 sections in 19 acts under its administrative purview including the Banking Regulation Act, the Reserve Bank of India (RBI) Act, the Insurance Act and the Negotiable Instruments Act.