Regulatory Alerts2017-01-01
Circular No. 17: Accuracy in Reporting Bounced Cheque Data
The Palestine Monetary Authority issued Circular No. 2017/17 to mandate increased accuracy in reporting bounced cheque data by all Palestinian banks. To mitigate negative impacts on customer credit ratings and system classification, the circular raises the penalty fee for each bank error in cheque files from 50 to 100 New Israeli Shekels, effective January 29, 2017. The directive explicitly prohibits banks from passing this penalty fee on to customers, requiring them to absorb the cost directly.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2017/17)
To all banks operating in Palestine
Date: Tuesday, January 24, 2017
Subject: Accuracy in Reporting Bounced Cheque Data
With reference to the Palestine Monetary Authority's instructions No. (2010/2) dated 31/01/2010 regarding the regulation of the bounced cheque system's operations, and my circulars No. (2010/56) dated 31/05/2010 and No. (2014/173) dated 3/12/2014 concerning the imposition of fees on banks' errors contained in customers' cheque files, and given the noticeable increase in these errors recently despite our prior warnings to bank management regarding this phenomenon as stated in the aforementioned circular No. (2014/173).
In light of this, and to address the issue that negatively impacts customer classification within the bounced cheque system and their credit rating, and with the aim of mitigating the risks of this phenomenon, we hereby inform you that the penalty fee for each error contained in the banks' files has been increased from 50 NIS to 100 NIS, effective from 29/01/2017. This penalty shall be collected from the bank and must not be collected from customers.
Market Disruption Department
Palestine Monetary Authority
Ramallah - Palestine P.O. Box 452 | Tel: +970 2 2415250 | Fax: +970 2 2409922 | Email: info@pma.ps
Gaza - Palestine P.O. Box 4026 | Tel: +970 8 2825292 | Fax: +970 8 2844487 | Email: info@pma.ps