Central Bank of Jordan Memorandum No. 65/2007 Regarding Bounced Cheques Unit Instructions

Central Bank of Jordan
CENTRAL BANK OF JORDAN

Reference No.: 9098/4/2/10
Date: 12/9/1428 AH
Subject: 24/9/2007 AD

Memorandum to Licensed Banks
No. (65/2007)

Based on the provisions of Articles (92/Z) and (99/B) of the Banking Law No. (28) of 2000 and its amendments, and subsequent instructions from the Bounced Cheques Unit No. (23/2005) dated 4/8/2005, please adhere to the following:

• Do not cash cheques against savings accounts opened with you.
• Include a clause in the current account opening contract signed by the client upon opening the account for the first time, stating that the bank will not accept any cheque drawn on it or deposited with it for collection, unless it is prepared on the forms issued by banks for this purpose.
• Cheque books issued by you must include the client's four-part or three-part name along with the family name.
• Print the branch name on the cheque book before delivering it to the client.
• Record the true reason, regardless of what it is, for returning any cheque, whether through data entered into the electronic clearing system or written on the cheque itself.
• Emphasize the issuance of cheque books to current account holders with low balances, excluding employee salary accounts.
• Do not cash any cheque drawn on another bank before settling and collecting its amount.

Central Bank of Jordan
CENTRAL BANK OF JORDAN

• Do not cash any cheque drawn to the order of an employee in addition to their job title and endorsed to the order of a regular person.
• Do not accept cheques as collateral when granting credit facilities to bank clients.
• Use electronic methods when circulating information about cheques that must be stopped for any reason, including the basic data of these cheques as stated in the Bounced Cheques Unit instructions.

This memorandum takes effect from its date and repeals the following memorandums and instructions:

1. Memorandum No. (78/39) dated 15/2/1978.
2. Memorandum No. (81/69) dated 13/4/1981.
3. Memorandum No. (86/17) dated 25/1/1986.
4. Memorandum No. (89/88) dated 16/4/1989.
5. Memorandum No. (94/33) dated 31/1/1994.
6. Memorandum No. (94/267) dated 15/11/1994.
7. Memorandum No. (95/166) dated 8/7/1995.
8. Memorandum No. (95/168) dated 17/7/1995.
9. Memorandum No. (97/46) dated 17/3/1997.
10. Memorandum No. (97/137) dated 22/7/1997.
11. Memorandum No. (2001/81) dated 4/4/2001.
12. Circular No. (14204/7020) dated 18/6/1994.
13. Circular No. (7720/7020) dated 27/3/1995.
14. Circular No. (10331/3/2/10) dated 6/7/2003.

Please accept our highest respect,
Governor
Dr. Amieh Touqan

Form (1/10/09)