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2023-01-01

Instructions No. 17 of 2023 Regarding the Reversal of Returned Check Fees for Insufficient Funds

The Palestine Monetary Authority issued Instructions No. 17 of 2023 to mitigate the economic impact of the ongoing war by mandating banks to reverse collected fees on returned checks for insufficient funds. The refund applies from November 1, 2023, to December 31, 2023, covering public sector employees, affected private sector workers, artisans, self-employed professionals, and micro-enterprises. Banks must ensure the refunded check amounts align with either the beneficiaries' monthly net income or their historical account activity averages, depending on the category.

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Palestine Monetary Authority

Instructions No. (17) of 2023 Regarding the Reversal of Returned Check Fees for Insufficient Funds

Based on the provisions of Decision-Law No. (9) of 2010 regarding Banks, particularly Articles (40, 72) thereof, and in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:

Article (1) Objective and Scope of Application

  1. The provisions of these Instructions aim to mitigate the negative effects resulting from the current war on affected categories by reversing the value of returned check fees for insufficient funds.
  2. The provisions of these Instructions apply to all banks licensed by the Palestine Monetary Authority to conduct banking operations.

Article (2) Refund of Returned Check Fees for Insufficient Funds

The bank must refund the returned check fees collected on returned checks for insufficient funds from 2023/11/01 to 2023/12/31 for the following categories:

  1. Public sector employees.
  2. Private sector employees and workers whose income was affected by the ongoing war.
  3. Artisans and self-employed professionals.
  4. Micro-enterprises.

1 www.pma.ps Ramallah and al-Bireh Governorate - P.O. Box 452, Palestine | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps | Postal code: P6160675

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Article (3) Conditions for Refunding Returned Check Fees for Insufficient Funds

  1. When refunding returned check fees for insufficient funds to public sector employees, private sector employees, and workers, the bank must ensure that the value of the returned check(s) falls within the limits of their monthly net income.
  2. When refunding returned check fees for insufficient funds to artisans, self-employed professionals, and micro-enterprises, the bank must ensure that the value of the returned check(s) falls within the limits of their average income and the monthly average of checks drawn on the customer's account during the period from 2023/01/01 to 2023/09/30.

Article (4) Implementation and Enactment

All competent authorities must implement the provisions of these Instructions, each within its respective jurisdiction, and they shall apply from the date of their issuance.

Issued in Ramallah, on date: 2023/12/26 AD

Dr. Firas Malhem Governor [Signature]

2 www.pma.ps Ramallah and al-Bireh Governorate - P.O. Box 452, Palestine | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps | Postal code: P6160675

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