Central Bank to charge fees on dud cheques

The UAE Central Bank will impose fees on bounced cheques from June 1, local daily Gulf Today has reported, quoting a well-informed source at the apex bank.

The report stated said that the Central Bank, in a circular to all banks in the UAE, has stated that it would impose fees ranging between Dh100 and Dh200 on cheques being returned because of technical errors.

The errors covered, according to the source, include cases where a cheque does not have a date, a cheque is unclear or the value of the cheque is different from the value in words.

The source pointed out that all fees will be collected electronically from the issuing bank.
On the other hand, the source stressed that the Central Bank is aiming from these new measures to oblige banks to take the proper precautions and follow all procedures to audit cheques before sending the same for clearing.

According to the report, the value of bounced checks over the past year is at Dh46.85  billion.

[Image via Shutterstock]

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