A bounced cheque matters to your CIBIL score through the payment it misses, in the sources this desk read. Lenders report your account’s repayment history, so an EMI left unpaid by a bounced cheque, or by a failed auto-debit, is what can show up. TransUnion CIBIL’s blog says a missed payment can affect your score for up to two years.
A bounced cheque will reduce your CIBIL score: true or false?
Partly true. CIBIL’s blog says the score is calculated from your credit history, and that a missed payment can affect it for up to two years and stays visible on the report for 36 months. That article is about credit cards; the figures are CIBIL’s, not law.
The bounce itself is a banking and legal event. Our explainer on whether loan apps report to CIBIL covers why reporting runs through the lender.
What if a loan app’s EMI debit bounces instead?
If your loan app collects EMIs by auto-debit, a NACH or e-mandate, the cheque section is not the one written for it; the Payment and Settlement Systems Act 2007 has its own provision for failed electronic transfers, section 25. Whether a given auto-debit counts is not answered in the text this desk read. This desk read section 25 and section 138 of the Negotiable Instruments Act on Indian Kanoon on 18 October 2026, without checking the Gazette for later amendment.
| Cheque: NI Act s.138 | Electronic transfer: PSS Act s.25 | |
|---|---|---|
| What fails | Cheque returned unpaid, funds insufficient | Transfer not executed, funds insufficient |
| Penalty | Up to two years, or a fine up to twice the cheque, or both | Up to two years, or a fine up to twice the transfer, or both |
| Purpose | A legally enforceable debt or liability | Same; presumed unless disproved |
| Extra condition | Presented within six months or its validity | Made under the system provider’s procedural guidelines |
| Demand notice | Written, within 30 days of the bank’s information | Same |
| Time to pay | 15 days from receiving the notice | Same |
| “I didn’t know the balance was short” | Not in the section’s text | Not a defence (s.25(3)) |
Section 25(5) applies Chapter XVII of the 1881 Act, which holds section 138, to failed transfers “to the extent the circumstances admit”.
What the fifteen days mean
Both sections apply only when every proviso is met, the last being that the payer fails to pay within fifteen days of receiving the written demand. A bounce alone does not meet them. Paying inside that window answers the legal condition. CIBIL’s blog says a missed payment remains part of the credit history, so paying later may not erase an EMI already reported. Our piece on what happens if you don’t repay a loan app covers collections.
FAQ
Does cheque bounce affect CIBIL score?
Through the payment it misses. Lenders report your account’s repayment history, so a bounced EMI cheque that leaves the instalment unpaid can show as a missed payment. TransUnion CIBIL’s blog says a missed payment can affect the score for up to two years.
How does a cheque bounce affect CIBIL score in India?
The score is built from your credit history, so what counts is whether the loan was paid on time. If the bounce means the EMI was paid late or not at all, that is what the lender reports. CIBIL’s blog says a missed payment stays part of your credit history.
A bounced cheque will reduce your CIBIL score: true or false?
Partly true. The score moves on the repayment record. A bounce that leaves an EMI unpaid can lower it, because the missed payment is reported. None of the sources this desk read describes a bureau scoring a bounce on its own.
None of this is legal or financial advice; a notice under either section is one for a lawyer.