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2023-01-01

Instructions No. 17 of 2023 Regarding the Reversal of Bounced Check Fees Due to Insufficient Funds

The Palestine Monetary Authority issued Instructions No. 17 of 2023 mandating licensed banks to reverse bounced check fees due to insufficient funds for designated vulnerable categories between November 1 and December 31, 2023. The directive requires financial institutions to apply the reversal to public sector employees, affected private sector workers, artisans, self-employed professionals, and micro-enterprises, while enforcing strict verification that bounced check values correspond to either monthly net income or historical average account activity. All relevant authorities must implement these measures immediately to alleviate the financial burden on affected populations during the ongoing conflict.

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PALESTINE MONETARY AUTHORITY

Instructions No. (17) of 2023 Regarding the Reversal of Bounced Check Fees Due to Insufficient Funds

Based on the provisions of Decision-Law No. (9) of 2010 concerning Banks, particularly Articles (40, 72) thereof, and in accordance with the powers delegated to us, and to serve 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 the bounced check fee due to insufficient funds.
  2. The provisions of these Instructions apply to all banks licensed by the Palestine Monetary Authority to conduct banking business.

Article (2) Reversal of Bounced Check Fees Due to Insufficient Funds

The bank must reverse the bounced check fee collected on bounced checks due to insufficient funds from the date 2023/11/01 until 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 - Palestine | P.O. Box 452 | Tel: +970 2 2415251 | Fax: +970 2 2415310 | info@pma.ps | Postal code: P6160675

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PALESTINE MONETARY AUTHORITY

Article (3) Conditions for Reversing Bounced Check Fees Due to Insufficient Funds

  1. When reversing the bounced check fee for public sector employees, private sector employees, and workers, the bank must ensure that the value of the bounced check(s) falls within the limits of the monthly net income.
  2. When reversing the bounced check fee for artisans, self-employed professionals, and micro-enterprises, the bank must ensure that the value of the bounced check(s) falls within the limits of the average monthly income and the average monthly check withdrawal rate from the customer's account during the period from 2023/01/01 to 2023/09/30.

Article (4) Implementation and Enforcement

All competent authorities must implement the provisions of these Instructions according to their respective jurisdictions, and they shall apply from the date of issuance.

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

Dr. Firas Malham Governor [Signature]

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

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