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

2020 Central Bank of Jordan Regulation on 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 31/12/2020 is considered the exceptional period for the Corona pandemic. The mechanism for calculating the grace period for bounced checks during the pandemic will be modified to rely on calendar days instead of working days, meaning Saturdays and Sundays will be counted. The calculation of the grace period for bounced checks during the pandemic will begin from the day following the date of the check's return. The same format as the 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, especially regarding the return date of the check, 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 for periods (1-3); otherwise, the bank is considered in violation of the prevailing instructions. Regarding bounced checks during the fourth period, banks must report these checks immediately after the expiration of the grace period granted for that period. 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. It is prohibited to collect any commissions on bounced checks or on any settlement made for those checks (whether the settlement is within the grace period or after it) during periods (1-3), whether the check was presented once during the aforementioned periods or presented and displayed again after 26/5/2020. As for checks returned within the fourth period, an amount of (5) dinars is to be collected as a commission for any bounced check and (5) dinars as a commission for any settlement made by customers (whether the settlement is within the grace period or after the grace period). The date of rejection of checks, not the date of the session on the clearing system, is adopted as the date of return of checks for the session from 22/03/2020 which closed on 16/04/2020, and the date of return of other checks (submitted directly to banks) / the counter, depending on the date of their return to 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. Return to working with bounced check instructions as usual starting from 3/1/2021. The grace periods for bounced checks during the Corona pandemic are as follows:

Fourth Period From 26/5 to 31/12 Third Period From 3/5 to 21/5 Second Period From 5/4 to 30/4 First Period From 26/2 to 4/4

Sector/Period Month - 30 days Month - 30 days Two months - 60 days 3 months - 90 days Medical Supplies Sector Month - 30 days Month - 30 days Month - 30 days 3 months - 90 days Food Materials Sector Month and a half - 45 days Month and a half - 45 days 3 months - 90 days 3 months - 90 days Other Sectors

Illustrative Examples of Reports Medical Supplies Sector, Food Materials Sector, Other Sectors / First Period from 26/2 to 4/4 26-01-2020 The actual date recorded on the check paper Check Issue Date 23-03-2020 The actual date the check was returned Check Return Date 22-06-2020 Check Return Date plus 90 days normal Reporting Date to the Central Bank 24-03-2020 Must be as usual so that it falls between the return date and the Central Bank reporting date Customer Reporting Date

Medical Supplies Sector / Second Period from 5/4 to 30/4 26-01-2020 The actual date recorded on the check paper Check Issue Date 19-04-2020 The actual date the check was returned Check Return Date 19-06-2020 Check Return Date plus 60 days normal Reporting Date to the Central Bank 20-04-2020 Must be as usual so that it falls between the return date and the Central Bank reporting date Customer Reporting Date

Other Sectors / Third Period from 3/5 to 21/5 26-01-2020 The actual date recorded on the check paper Check Issue Date 12-05-2020 The actual date the check was returned Check Return Date 27-06-2020 Check Return Date plus 45 days normal Reporting Date to the Central Bank 14-05-2020 Must be as usual so that it falls between the return date and the Central Bank reporting date Customer Reporting Date