You dropped a cheque for the card bill. It came back unpaid. The next PDF showed a bounce charge — and often a late payment line as well.
Public MITC language:
Effective 1st July 2019 Rs 500 will get debited towards cheque bounce charges.
That ₹500 is per instance, not “once per month no matter how many cheques.” It is not the late-fee slab and not the ₹299 cash-at-branch fee.
If the bounced paper was the only attempt at MAD, the issuer still did not receive minimum payment by the due date.
Related: APR · Grace · CIBIL / 150 days · Paper statement · Cash advance · Over-limit · Add-on · Annual fee · Lost card · Forex · Fuel / rail
Bounce charge in one sentence
A cheque bounce charge is a penalty for a card repayment cheque (or similar paper instrument) that is returned unpaid — insufficient funds, signature, stale date, stop payment, account closed.
GST is typically added. The failed amount never reduced the card outstanding.
The expensive stack (one bounced cheque)
Assume due date 18 Nov, you drop a cheque for TAD on 16 Nov, it returns on 19 Nov.
| Line | Why it appears |
|---|---|
| Cheque bounce ~₹500 + GST | Instrument unpaid |
| Late payment slab (₹100–₹800 band on many old tables) | MAD not received by due date |
| Extra ₹100 on some tariffs | MAD missed two or more consecutive months |
| Finance charges / APR | Balance still revolving |
| Next MAD higher | Bounce + late fee sit in fees; unpaid previous MAD may be added |
| CIC / CIBIL | Monthly file can show a missed minimum |
Paying a fresh UPI the day you hear about the bounce limits damage. It does not always reverse the ₹500.
EMI / balance-transfer buckets can each have their own late fee if that bucket’s cheque failed. Same idea as the two-bucket late-fee example.
Cheque vs ECS/NACH vs UPI — all can “bounce”
| Channel | Typical card-tariff name | What fails |
|---|---|---|
| Cheque | Cheque bounce ~₹500 | Paper returned |
| ECS / NACH / standing instruction | Failed mandate / SI (fee varies; not always the same ₹500 row) | Savings short on debit day |
| UPI / IMPS | Usually no bounce fee if it never succeeds | You still miss MAD if nothing credits |
| Cash at branch | ~₹299 repayment fee if it succeeds | Wrong cousin of bounce |
Auto-pay is safer than cheques only if the savings account holds TAD, not a guess at last month’s MAD.
Timing: drop date is not credit date
Cheques need clearing days. A cheque given on the due date is a common miss.
- Outstation cheques take longer.
- Stop-payment at the savings bank is still a return on the card.
- Post-dated cheques meant for later cycles can be presented early by mistake — still your coordination problem.
- Deemed receipt of the statement does not wait for your cheque.
Practical: electronic payment two working days before due date. Keep cheques off the card bill unless the issuer still requires them.
Legal overlay (short, not advice)
Repeated cheque dishonour can have Negotiable Instruments Act consequences between the drawer and the payee. The card issuer’s ₹500 tariff is a contract fee, not the whole legal story. This article does not walk through criminal process. If bounce letters escalate, use a lawyer and keep the return memo.
For the card, the operational fix is: fund the account electronically, then argue fees.
Short FAQ
How much is a credit card cheque bounce charge in India?
On some published MITCs, ₹500 per bounce (from a stated effective date), plus GST. Confirm your schedule.
Why did I also get a late fee?
Bounce means the payment was not received. Late fee follows MAD / due date, not the cheque drop.
Will this hit CIBIL?
A missed MAD can go in the monthly CIC file. The bounce fee itself is just a charge. 150-day defaulter is a longer clock.
Two cheques bounced in one month — one fee or two?
Per instance language means two ₹500 lines is possible.
Can I stop a cheque and pay UPI instead?
Stop-payment often still bounces if already presented. Pay UPI first, then stop if the cheque has not gone.
What you should do
- If a cheque is in flight, keep full TAD in the savings account until it clears.
- On bounce SMS, pay UPI/IMPS the same day (MAD at least, TAD if you can).
- Switch the card to auto-debit TAD.
- On the next statement, separate bounce, late, GST, interest before you call.
- Do not send a second cheque for the same cycle; use electronic.
Educational explainer, not legal advice. Bounce fees and SI fees change by issuer. Your return memo, MITC, and schedule of charges are the source of truth.
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