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Media In Abu Dhabi – 10 December 2018 / WAM /
As part of ongoing efforts to improve and promote responsible lending practices among banks, the UAE Central Bank issued a circular to banks on issuing check books to customers.
Under the circular, banks are now required to check the creditworthiness of their customers in the Union’s credit information database before issuing check books.
In addition, banks will issue a checkbook of only 10-10 pages for new customers. Additional checkbooks can be issued after six months, depending on the procedures provided there are no “unpaid” checks.
Banks are required to notify their customers that checks returned due to lack of sufficient balance in the account will be registered with Union Credit Information Company, which will negatively impact the creditworthiness of the customers.
The Central Bank encouraged banks to advise their clients to minimize their use of checks and to replace them with other available means of payment, such as “direct debit and bank transfers” where possible.
The Circular was issued by the Central Bank with reference to its previous Circular No. 14/93 on “Checks returned, current accounts, savings accounts and on demand” and subsequent amendments to notice No. 223/93.
– Official website of the Central Bank: www.centralbank.ae/ -.
