Circular to Licensed Banks

Subject: Bounced Checks for Financial Reasons During the Suspension Period

Greetings,

With reference to the above subject, and subsequently to Circulars with numbers (4583/4/1) dated 2020/3/19, (4641/4/1) dated 2020/3/31, (4659/4/1) dated 2020/4/5, (4737/4/1) dated 2020/4/15, and (4936/4/1) dated 2020/4/30, I have decided the following:

1. The use of time periods (calendar days) instead of business days is approved for the mechanism of calculating the grace period for bounced checks during the exceptional period of the coronavirus pandemic, which starts from 2020/2/26 until 2020/5/21, as follows:

   • The first period from 2020/2/26 to 2020/4/4.
   • The second period from 2020/4/5 to 2020/4/30.
   • The third period from 2020/5/3 to 2020/5/21.

2. Banks are left to determine the customer sectors whose checks were returned, as well as the extent to which customers of these sectors were operating/suspended during the exceptional periods mentioned above, for the purpose of calculating the grace period in accordance with the circulars issued on this matter.

3. Banks must report bounced checks during the suspension period due to the coronavirus pandemic, no later than 2020/10/31; otherwise, the bank is considered in violation of the prevailing instructions.

4. The collection of any commissions for bounced checks (check return fee) is prohibited during the coronavirus pandemic, whether submitted once during the pandemic, resubmitted and presented again during the pandemic period, or after 5/21, until the settlement period granted to the customer expires. 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 commissions resulting in accordance with the prevailing legislation on this matter.

5. The instructions of the Returned Checks Unit are reinstated according to the usual practice effective from 2020/5/26.

Please accept our highest respect,

Governor Dr. Ziad Fariz

• Attached: A guide for banks on how to report returned checks during the coronavirus pandemic.

P.O. Box 37 • Amman 11118 Jordan • Phone: 4630301 • Fax: 4638889 • Website: www.cbj.gov.jo • Email: info@cbj.gov.jo

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Central Bank of Jordan

Returned Checks System in the Banking Sector

Guide on How to Report Returned Checks During the Coronavirus Pandemic

[Description of reporting mechanism]

Below is a general description of how to report bounced checks during the coronavirus pandemic.

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1. Key Work Determinants:

• Consider the entire period from 2020/2/26 to 2020/5/21 as the exceptional period of the coronavirus pandemic.
• The mechanism for calculating the grace period for bounced checks during the coronavirus pandemic will be modified to rely on calendar days instead of business days, so that Saturdays and Fridays are counted.
• The calculation of the grace period for bounced checks during the coronavirus pandemic will start from the day following the date of returning the check.
• The same format of current files will be used (RET reporting files).
• Bounced checks will be grouped into a single file according to the mechanism previously in effect, so 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 outlined in the circulars issued on this matter, using the dates as they are in reality, especially regarding the return date of checks, to facilitate the monitoring process by banks when creating settlement/modification/deletion files.
• The Central Bank will allow reporting of bounced checks during the coronavirus pandemic according to the new calculation mechanism.
• Banks must report bounced checks during the suspension period due to the coronavirus pandemic, no later than 2020/10/31; otherwise, the bank is considered in violation of the prevailing instructions.
• Banks are left to determine the customer sectors whose checks were returned during the coronavirus pandemic, and thus the grace period, according to the circulars issued on this matter. Banks are also left to determine the extent to which their customers were operating/suspended during the coronavirus pandemic, and thus calculate the grace period, according to the circulars issued on this matter.
• The collection of any commissions for bounced checks (check return fee) is prohibited during the coronavirus pandemic, whether submitted once during the pandemic, resubmitted and presented again during the pandemic period, or after 5/21, until the settlement period granted to the customer expires. 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 commissions resulting in accordance with the prevailing legislation on this matter.
• The date of rejection of checks will be adopted, not the session date on the clearing system, as the return date for checks for the session from 2020/3/22 which closed on 2020/4/16, and the return date for other checks (submitted directly to banks / counter) depending on the date they were returned to the banks' private systems.
• Any reporting that does not conform to the grace periods mentioned in the circulars issued on this matter will be rejected.
• Return to working with the instructions for bounced checks according to the usual practice effective from 2020/5/26.
• The grace periods for bounced checks during the coronavirus pandemic are as follows:

Sector/Period	First Period from 2/26 to 4/4	Second Period from 4/5 to 4/30	Third Period from 5/3 to 5/21
Medical Supplies Sector	3 months - 90 days	2 months - 60 days	1 month - 30 days
Food Materials Sector	3 months - 90 days	1 month - 30 days	1 month - 30 days
Other Sectors	3 months - 90 days	3 months - 90 days	1.5 months - 45 days

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2. Illustrative Examples of Reports

Medical Supplies Sector, Food Materials Sector / First Period from 2/26 to 4/4
Check Issue Date	The actual date recorded on the check paper
Check Return Date	The actual date the check was returned
Reporting Date to the Central Bank	Check return date plus 90 normal days
Customer Notification Date	Must be as usual, falling between the return date and Central Bank reporting

Medical Supplies Sector / Second Period from 4/5 to 4/30
Check Issue Date	The actual date recorded on the check paper
Check Return Date	The actual date the check was returned
Reporting Date to the Central Bank	Check return date plus 60 normal days
Customer Notification Date	Must be as usual, falling between the return date and Central Bank reporting

Other Sectors / Third Period from 5/3 to 5/21
Check Issue Date	The actual date recorded on the check paper
Check Return Date	The actual date the check was returned
Reporting Date to the Central Bank	Check return date plus 45 normal days
Customer Notification Date	Must be as usual, falling between the return date and Central Bank reporting

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