Regulatory Alerts2018-12-27
National Bank of Rwanda Regulation on Bouncing Cheques
The National Bank of Rwanda issued this regulation to standardize the reporting and handling of bouncing cheques by imposing specific obligations on paying banks and cheque drawers. Defaulters face suspension of credit facilities, restrictions on obtaining new cheque books or opening accounts, and mandatory return of existing books for six months after a first incident and one year thereafter. These restrictions are lifted once the defaulter provides proof of payment, obtains a clearance letter from the prosecution authority, and pays a 20 percent pecuniary sanction per bounced cheque.
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