Regulatory Alerts2000-06-28
Added · Updated
Clarification Relating to the Implementation of BID 12 (Compulsory Suspension of Cheque Accounts)
Banking institutions must suspend a cheque account only when five cheques are referred to drawer due to insufficient funds over three months, and suspension at one institution does not trigger automatic suspension at another. Dishonoured cheques resulting from internal communication gaps or system failures are not counted as contraventions, and multiple presentations of the same cheque constitute a single contravention. Institutions are authorized to disclose customer cheque account information to other banks for interbank confirmation upon obtaining written consent. Reporting requirements mandate that closed accounts be reported as compulsory closed, and the value and number of returned cheques recorded must reflect the five cheques that triggered the suspension.
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