Having effortlessly transitioned into acting, Fouzia's debut film swiftly captured global acclaim, earning accolades at the prestigious Cannes Film Festival
For new customers, the apex bank has asked local banks to issue a cheque book containing a maximum of 10 individual cheques. But the banks can issue, as per the approved procedures, more cheque books after 6 months, provided no cheques have bounced during this period.
"Banks should advise their customers that returned [bounced] cheques due to insufficient funds on the account will be recorded with the Etihad Credit Bureau and will negatively affect the creditworthiness of customers. Banks have been also encouraged to advise their customers to minimise the use of cheques and consider other payment methods - such as direct debits and bank transfers - where possible," the Central Bank said in a statement on Monday.
According to Central Bank data, cheques worth Dh26.2 billion bounced during the first 5 months of 2018, representing 4.3 per cent of the total value of cheques cleared during the period. Under the UAE law, criminal penalties such as detention and fine can be imposed on individuals in case of bounced cheques.
Yogesh Khairajani, investment research analyst at Century Financial, said this initiative is a simple and effective approach to further strengthen the UAE's financial system.
"Credit is the foundation of modern banking and thus ensuring the borrower's creditworthiness becomes integral to the functioning of an economy. From that aspect, the Central Bank directive asking banks to check with the Al Etihad Credit Bureau before issuing a cheque book can be viewed as a method of moral persuasion. For sure, no business or individual would like to be in a scenario where they don't have cheque books to conduct a financial transaction as it means they are not creditworthy according to new rules," Khairajani said.
- waheedabbas@khaleejtimes.com
Having effortlessly transitioned into acting, Fouzia's debut film swiftly captured global acclaim, earning accolades at the prestigious Cannes Film Festival
Parag, who reached his 50 off 34 balls, cracked 25 runs with three fours and two sixes off the final over bowled by star South Africa paceman Anrich Nortje
Fans were left scratching their heads when Mumbai opted to take Bumrah out of the attack after he bowled the fourth over
With the help of modern equipment, manicured golf courses and elite athletes the scores are getting lower and the game becoming even more captivating
With 10 matches remaining Arsenal lead a three-way title race having won eight successive games
Three separate Israeli strikes on Wednesday, including on a health centre in the border village of Habariyeh, killed 11 civilians
Netanyahu tries to soothe a rift with Biden as he plans to send a government delegation to Washington after earlier cancelling the trip
Among the 24 horses Japan has sent to Dubai is impressive Riyadh Dirt Sprint winner Remake who eyes a Middle East double