Regulatory Alerts2021-01-01
Instructions No. (9) of 2021 Regarding the Right to Cash Deposits
The Palestine Monetary Authority issued Instructions No. (9) of 2021 requiring all licensed banks in Palestine to credit cash deposits to current accounts effective on the deposit date, explicitly prohibiting interest on such balances. The directive permits banks to negotiate special deposit terms exclusively with large enterprises, defined as economic entities employing at least 50 staff or achieving annual sales of $2 million or more. Violations are penalized under Legislative Decree No. (9) of 2010 concerning Banks, and the instructions became effective on September 15, 2021.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Instructions No. (9) of 2021
Regarding the Right to Cash Deposits
Pursuant to the provisions of Legislative Decree No. (9) of 2010 concerning Banks, particularly Articles (43) and (72) thereof, and in accordance with the authorities vested in us, and in pursuit of the public interest, we have issued the following Instructions:
Article (1)
Definitions
The words and phrases contained in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:
Large Enterprise: An economic entity that employs (50) employees or more, or whose annual sales volume is (2,000,000) US dollars or more.
Article (2)
Scope of Application
The provisions of these Instructions shall apply to all banks licensed to operate in Palestine.
Article (3)
Effective Date of Cash Deposit Rights
- The bank shall accept and credit cash deposits in current accounts effective on the same day of deposit, and in this case, no interest shall be payable.
- Notwithstanding the provisions of paragraph (1) of this Article, the bank may enter into special agreements governing cash deposit rights in current accounts exclusively with Large Enterprises.
Article (4)
Penalties
Any person who violates the provisions of these Instructions shall be penalized in accordance with the provisions of Legislative Decree No. (9) of 2010 concerning Banks.
Article (5)
Repeal of Conflicting Provisions
All provisions conflicting with these Instructions are hereby repealed.
Article (6)
Implementation and Enforcement
All competent authorities shall implement the provisions of these Instructions according to their respective jurisdictions, and these Instructions shall apply from September 15, 2021.
Issued in Ramallah on September 15, 2021.
Dr. Firas Malham
Governor
(Signature)
Note:
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Tel: +970 8 2825713
www.pma.ps