Regulatory Alerts2022-01-01
Circular No. 11/2022: Amendments to the Bounced Cheques System
The Palestine Monetary Authority issued Circular No. 11/2022 to amend the operational mechanism of the Bounced Cheques System, reducing the payment period for bounced cheques from 12 to 5 working days for grade (C) customers, who will automatically revert to grade (E) upon timely payment. The circular introduces incentive measures for grade (B) customers, upgrading them to grade (A) instead of grade (E) if they clear all bounced cheques within the payment window, and expands customer classification categories to improve risk analysis and cheque volume tracking. All operating banks are mandated to implement these amendments effective June 12, 2022, and formally notify their customers of the changes.
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