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Posted On: 1 November 2020 05:51 pm
Updated On: 12 November 2020 02:08 pm

QCB issues new instructions to banks regarding bounced checks

Vrinda Abilash
Vrinda Abilash
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Qatar Central Bank (QCB) issued on Sunday new instructions and controls to limit the phenomenon of bounced checks, allowing banks to inquire about their customers and view the history of their transactions, in terms of fulfilling financial obligations, to enable banks to take appropriate decisions before issuing chequebooks.

In this context, H.E. QCB Governor Sheikh Abdulla bin Saoud Al-Thani inaugurated a new central system, to inquire about bounced checks through the Qatar Credit Bureau, which includes all bank data of the customers, who issued bounced checks due to nil or insufficient balance across the country.

Under the new instructions, the Qatar Credit Bureau issues reports in which the names of each of the individuals and companies who issued at least one check are listed and are bounced due to nil or insufficient balance in any of the banks operating in the country and banks are obligated not to issue or deliver new chequebooks to those whose names are listed in those reports except after settling the amount of the bounced check and removing the name from the list of bounced checks at the centre.

The new instructions also oblige banks to list their customers, who issued bounced checks, due to nil or insufficient balance, or any other reason that prevents disbursement, such as the difference in the signature in the report of the bounced checks at the Qatar Credit Bureau, within a date no later than the second working day, to feed the database of the centre with updated information on individuals and companies at the state level, so that it is easy to refer to it to make appropriate decisions on requests for chequebook issuance that clients submit to different banks.

Source: QNA
Cover image credit: AME Info