The incarceration of Bollywood actor Rajpal Yadav in a check bounce case serves as a grim reminder that financial negligence can lead straight to jail. Facing charges over a ₹5 crore loan from 2010, Rajpal issued multiple checks that were dishonored, eventually leading to his sentencing in Tihar Jail.

Why the Law is Strict: Under Section 138 of the Negotiable Instruments Act, check bouncing is a criminal offense. If the payment is not made within 30 days of receiving a legal notice, the drawer can face:

• Up to 2 years of imprisonment.
• A fine twice the amount of the check.
• Permanent damage to Credit Score (CIBIL), making future loans impossible.

Financial Impacts: Beyond legal threats, banks impose heavy “Bounce Charges” for failed NACH or EMI payments. If your payments fail repeatedly, financial institutions label you a “high-risk customer,” shutting the doors to any future credit relief or refinancing options.