UAE bounced cheque amount drops 25%

The amount of money involved in bounced cheques in the UAE declined by 25 per cent in the first four months of this year to Dh18.6 billion compared with Dh24.8 billion in the corresponding period of 2009, Central Bank data shows.
 
This is despite the fact that the total number of bounced cheques shot up more than 8 per cent during the same period from 544,196 cases of returned cheques in the January-April period last year to 588,570 in the first four months of 2010.
 
Although the amount in these bounced cheques has declined by a quarter in the first four months of 2010, the number of retuned cheques as a percentage of total cheques presented has gone up.

While that number equated to one in every 18 cheques for the first four months of 2009, it now stands closer to one in every 16 cheques, data shows.
 
Bouncing of cheque is a criminal offence in the UAE, punishable by prison term if the aggrieved party decides to press charges.

The country had in late last year set up a committee to look into the growing problem of bounced cheques, with such incidents increasing due to the global economic slowdown.
 
Several officials have in the past suggested making bounced cheques a civil offence that could be dealt by the civil courts. Currently, all such matters are handled by the police and the growing number of such cases puts additional strain on the department. A new initiative in this regard is expected to be announced shortly.

Follow Emirates 24|7 on Google News.