Cheques' e-images now a proof

UAE Central Bank said on Monday that it had obtained a decision from the Ministerial Council for Services to include images of cheques sent to the Central Bank electronically, among tools that are subject to the provisions of Federal Law No. (1) of 2006 concerning Electronic Transactions and Commerce, and as document of proof before the UAE courts.

The decision based on the text of Article 2.3 of the said Law, also said that the electronic images can be accepted provided that original physical cheques are kept with banks for cheque forgery case proceedings, as needed.

“Therefore, it has been decided to stop the sorting and exchange process of physical cheques at the Central Bank in Abu Dhabi and Dubai, starting from February 29, 2012", said a circular sent to all banks operating in the UAE.

ICCS member banks have to keep the original physical cheques deposited with them for collection and stamp the same with the following statement, before sending cheque images electronically to the Image Cheque Clearing System, said the circular.

The enhancement of the electronic image cheque clearing procedures shall cut costs relating to cheque clearing and improve the collection time.

The apex bank also asked all banks to comply with the above requirements, keep the original cheques deposited with them for the legally binding period and present them upon request, starting from Wednesday, February 29, 2012.

The Central Bank said that it is constantly endeavoring to develop and enhance services provided to banks and other financial institutions operating in the UAE, for the purpose of providing faster and more advanced services.

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