Cheque guarantee Memo and letter B

 Concept Proposal: Establishment of the National Financial Redressal Commission (NFRC) Submitted by: Vinay Dadmal, Legal Drafting and Governance Reformist 55, First Floor, Swarajnagar, Behind Omkarnagar, Manewada Ring Road, Nagpur – 440027 Email: dadmalv2015@gmail.com Date: 22 August 2025 Place: Nagpur 1. Background and Rationale India faces a growing crisis of unresolved financial irregularities, including: • Cheque bounce cases under Section 138 of the Negotiable Instruments Act • Digital payment frauds and unauthorized transactions • Banking malpractices affecting borrowers and depositors • Delays in grievance redressal by financial institutions and ombudsmen Despite judicial efforts, resolution timelines often exceed 12–24 months, undermining public trust and economic efficiency. The current system lacks a dedicated, fast-track mechanism for financial grievance redressal. 2. Proposal: National Financial Redressal Commission (NFRC) A statutory body akin to the NHRC, the NFRC would serve as a quasi-judicial, technology enabled platform for resolving financial irregularities swiftly and transparently. Key Features: Online Complaint Portal for citizens Framework (within 90 days) Time-bound Resolution Mediation and Adjudication Panels RBI, SEBI, and Ombudsmen Parliament Public Advisories and Fraud Alerts 3. Legal and Institutional Framework The NFRC may be constituted via: • A dedicated NFRC Act • Or amendments to: o Consumer Protection Act o RBI Act o Information Technology Act Empowered to: directions Recommend prosecution or regulatory action Refer cases to law enforcement 4. Cheque Guarantee Memo: A Preventive Instrument Integration with Annual Reports to Issue binding A bank-issued document certifying that the cheque amount is pre-blocked in the drawer’s account. Key Attributes: • Issued at time of cheque issuance • Confirms fund reservation • Digitally verifiable • Reduces litigation under Section 138 • Enables safer property transactions Visual Cue: “B”-Marked Crossed Cheque — a capital “B” between crossing lines signals guaranteed funds, backed by bank verification. 5. Benefits to Citizens and Institutions Speedy Justice for victims Discipline Reduced Burden on Courts Improved Trust in banking property transactions 6. Request for Consideration I humbly urge: Enhanced Financial Support for Financial Inclusion • Law Commission of India – to study and recommend framework • Hon’ble Prime Minister – to initiate consultation • Reserve Bank of India – to explore feasibility and issue guidelines • Ministry of Finance – to support legislative development Safer This aligns with Digital India, Ease of Doing Business, and Citizen-Centric Governance. 7. Contact and Collaboration I am available to assist in: • Drafting legislative framework • Stakeholder consultations • Pilot implementation in Maharashtra or other states Submitted by: Vinay Dadmal Legal Drafting and Governance Reformist Nagpur | dadmalv2015@gmail.com | 22 August 2025