Expert Answer
Question:
Is cheque bounce applicable in payday loans?
Answer:
If you’ve given a physical cheque or signed an ECS/NACH mandate and it’s used, then Section 138 NI Act can apply, provided all technical legal requirements are met. Loans made through UPI or an online app without checks usually don't lead to cases of bounced checks.
By Advocate BK Singh
Supreme Court | High Court | Tribunals
