Central Bank of Jordan Guide on Reporting Bounced Checks During the Corona Pandemic

2020 Central Bank of Jordan Regulation of Bounced Checks in the Banking Sector Guide on Reporting Bounced Checks During the Corona Pandemic [ Description of the Reporting Mechanism ] The following is a general description of how to report bounced checks during the Corona pandemic. Key Operational Determinants: The entire period from 26/02/2020 to 21/05/2020 is considered the exceptional period for the Corona pandemic. The mechanism for calculating the grace period for bounced checks during the Corona pandemic will be modified to rely on calendar days rather than working days, meaning Saturdays and Sundays will be included in the calculation. The grace period for bounced checks during the Corona pandemic will begin counting from the day following the date of the check's re-presentation. The same format for current files / reporting files (RET) will be used. Bounced checks will be grouped into a single file according to the previously established mechanism, such that the file contains all drawers and bounced checks on the same date or with the same reporting date. Banks operating in the Kingdom will adopt the new calculation mechanism according to the sectors specified in the circulars issued on this matter, using the dates as they are in reality, particularly regarding the re-presentation date of checks, to facilitate the monitoring process by banks when creating settlement, modification, and deletion files. The Central Bank will allow the receipt of reports on bounced checks during the Corona pandemic according to the new calculation mechanism. Banks are required to report bounced checks during the suspension period resulting from the Corona pandemic no later than 31/10/2020; otherwise, the bank is considered in violation of the prevailing instructions. Banks are left to determine the customer sectors that have bounced checks during the Corona pandemic and thus the grace period according to the circulars issued on this matter, and banks are also left to determine the extent to which their customers were operating/suspended during the Corona pandemic and thus calculate the grace period according to the circulars issued on this matter. The collection of any fees for bounced checks (re-presentation fee) is prohibited during the Corona pandemic, whether presented once during the pandemic, re-presented and displayed again during the pandemic period, or after 21/5, until the end of the settlement period granted to the customer. If the deadline specified for the customer expires without the customer settling the checks, they will be included in the list of defaulters and charged the fees incurred according to the prevailing legislation on this matter. The date of rejection of checks, not the date of the session on the clearing system, will be adopted as the date of re-presentation for checks for the session from 22/03/2020 which closed on 16/04/2020, and the date of re-presentation for other checks (submitted directly to banks) / counter checks, depending on the date they were entered into the banks' private banking systems. Any report that does not conform to the grace periods mentioned in the circulars issued on this matter will be rejected. Resumption of work with the bounced check instructions as usual effective from 26/5/2020. The grace periods for bounced checks during the Corona pandemic are as follows: Period Three From 3/5 to 21/5 Period Two From 5/4 to 30/4 Period One From 26/2 to 4/4 Sector/Period 1 Month – 30 days 2 Months – 60 days 3 Months – 90 days Medical Supplies Sector 1 Month – 30 days 1 Month – 30 days 3 Months – 90 days Food Materials Sector 1.5 Months – 45 days 3 Months – 90 days 3 Months – 90 days Other Sectors

Illustrative Examples of Reports Medical Supplies Sector, Food Materials Sector, Other Sectors / Period One from 26/2 to 4/4 26-01-2020 The actual date recorded on the check paper Check Issuance Date 23-03-2020 The actual date the check was returned Check Re-presentation Date 22-06-2020 Check Re-presentation Date plus 90 standard days Reporting Date to the Central Bank 24-03-2020 Must be as usual, falling between the re-presentation date and the Central Bank reporting date Customer Reporting Date Medical Supplies Sector / Period Two from 5/4 to 30/4 26-01-2020 The actual date recorded on the check paper Check Issuance Date 19-04-2020 The actual date the check was returned Check Re-presentation Date 19-06-2020 Check Re-presentation Date plus 60 standard days Reporting Date to the Central Bank 20-04-2020 Must be as usual, falling between the re-presentation date and the Central Bank reporting date Customer Reporting Date Other Sectors / Period Three from 3/5 to 21/5 26-01-2020 The actual date recorded on the check paper Check Issuance Date 12-05-2020 The actual date the check was returned Check Re-presentation Date 27-06-2020 Check Re-presentation Date plus 45 standard days Reporting Date to the Central Bank 14-05-2020 Must be as usual, falling between the re-presentation date and the Central Bank reporting date Customer Reporting Date