Online Blanking :What is the Smart Check App & how will it address check bounces in Pakistan ?
I have had checks worth 15 lakhs from a party for a long time which-have bounced but I have not taken any legal action against it. For one thing I do not want to get into trouble with the police station. Second I hope I get my money back someday because that how business goes.
Mr Shahbaz Khan of Karachi is involved in the export of canoes & provides logistics services for export of canoes.
In this regard he had to receive 15 lakhs from a party who gave him three checks of this amount. However according to Mr Shahbaz Khan these checks which were given a long time ago have not-been cashed yet & meanwhile when he deposited the checks in the bank on the party request they bounced.
Shahbaz Khan is not in favor of taking business transaction matters to the court because according to him it damages the reputation of the business.
He says that checks bounce in our business but the matter does not reach the police station & business matters are resolved through reconciliation.
On the other hand Muhammad Niaz runs a limited business in Karachi & has faced an FIR and jail time for bouncing a check.
Niaz said that he had given a guarantee in the case of a person transaction that person had to pay installments of the loan to a person who provided a loan at a profit.
I gave my check to lender as a guarantee and promised the borrower that he would deposit the money in my bank account on the due date but it didn't happen. I also had no money because the amount was big. On this the lender registered an FIR against me and I had to go to jail. Twenty days later when the person who gave the loan collected the money paid I lost my life from this case.
Mr Shahbaz Khan and Muhammad Niaz are 02 different victims of bounced check fraud in Pakistan 1 of whom did not reach the police station while the other ended up in jail.
Check bounce fraud is becoming a growing financial crime in Pakistan and a Smart Check App is now being worked on by the government to curb it.
In this regard according to Salman Sufi head of the PM Strategic Reforms Cell the government is working on this app with the State Bank of Pakistan & it will be launched soon.
What is the Smart Check app & how does it work?
Talking about the introduction of smart check app by the government Salman Sufi said that under this system, people will know in advance that if a check is given by a person recipient will receive it. Or not so that the risk factor one takes while taking the check is eliminated.
When a check is given enter its check number in this app then it will be known what is the credit history of this person & whether he should take the check or not.
Salman Sufi said that we are giving all this data to the receiver of the check so that he can decide whether to accept the check or not.
He said that in the light of this information the chances of bounced checks will be reduced and the problems of litigation will also be reduced. Second when the information is available on this app check issuers will also avoid issuing a cheque which is at risk of bouncing.
Salman Sufi said that on the direction of Prime Minister Shehbaz Sharif Strategic Reforms Unit decided to create this app because the financial crime of bounced checks is increasing in Pakistan.
He said that in this regard, a database is being prepared which will contain the data of all the bounced checks so that the credit history of the person giving the check can be known immediately and how many bounced checks have been given in the past. happened
What is check bounce & what does Pakistan law say in this regard?
Talking about bounced checks in Pakistan banking expert Rashid Masood Alam told British News that checks bounce in three ways.
1 is that you owe money to someone in a transaction & you give a check to avoid it regardless of whether you have money in your account or not. Another check bounces when you make a mistake while writing the check i.e. there is a difference in the words and figures of the amount written. 3rd when your signature on the check is not correct. In these three cases check gets bounced.
1860 Penal Code was amended in 2002 to include a new section 489F Dr Mr Shah nawaz Memon a lawyer who prosecutes cases involving financial disputes over check bouncing laws in Pakistan told the British news Gaya which states that if a check issued by one bounces the punishment is imprisonment for three years or fine or both.
Is the country current law against check bounce effective?
Shahnawaz Memon talking about the effectiveness of the current law against check bouncing in the country said that this law has-been effective because earlier it used to be that checks were issued 1st & later it was dishonored because There was no punishment on him.
It used to be that bounced checks were common in commercial transactions and it used to lead to disputes but after this law there was a lot of improvement because there is no bail in cases of bounced checks till the Supreme Court so people While giving the cheque they take care that the check does not bounce.
According to Dr. Memon whether a check is bounced by mistake or a check is bounced intentionally court interprets it under this law.
Dr. Memon said that the cases of bounced checks have reduced after the law came in. However he said that the law needs to be improved because there should not be an FIR for just showing a bounced check but a receipt or There should also be evidence as to what this check was given.
He said that in some places this law is being used as blackmail and it needs to be amended. If there is a receipt and evidence the case should be prosecuted under the Criminal Code.
On the other hand Salman Sufi while talking to British news said that the current law on bounced checks is not very effective because filing an FIR on bounced checks & running it in the police station is a difficult task for common people.
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Even after the FIRST the police have less means to recover the money & then go to the court and if the servant does not have the money how can he get back the money he has lost.
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