Regulatory Alerts2023-01-01
Instructions No. 6 of 2023 Regarding the Opening of a Temporary Overdraft Current Account for Borrowing Public Sector Employees (1)
The Palestine Monetary Authority issued Instructions No. 6 of 2023 to regulate the opening of temporary overdraft current accounts for public sector employees experiencing irregular salary disbursement. The mandate requires licensed banks (excluding Islamic banks) to establish these accounts within thirty days, cap annual reducing interest at 3%, and waive all associated fees while automatically settling balances upon salary receipt. Furthermore, the Instructions mandate specific credit classification under International Standard No. 9, outline exceptions for account closure based on employee requests or bilateral arrangements, and establish penalties for non-compliance effective from the issuance date.
Share