Regulatory Alerts2020-01-01
Circular No. 237 Bounced Cheques System
The Palestine Monetary Authority has amended the bounced cheques system to extend the assessment period for returned cheques on customer accounts from three months to a full calendar year. This directive requires banks to classify customers across categories B, C, and D based on all bounced cheques issued during that single year, effective January 1, 2021. The revision aligns with previous 2017 instructions and aims to curb the widespread use of bounced cheques in Palestine.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (2020/23)
To all banks operating in Palestine
Date: Thursday, December 10, 2020
Subject: Bounced Cheques System
Further to Palestine Monetary Authority Instructions No. (2017/2) regarding bounced cheques, amicable settlements, and stopped or lost cheques, and within the framework of the Authority's measures to curb the phenomenon of bounced cheques, the time period associated with the return periods for bounced cheques on customer accounts, currently set at three months, will be amended to become a full calendar year from the date of the first cheque returned to the customer's account. Customers will be classified based on all bounced cheques on the account during the single year for all classification categories (B, C, D), effective from January 1, 2021.
Financial Stability Group
Palestine Monetary Authority
Note:
The text on this page is an official document issued by the Palestine Monetary Authority, concerning the amendment of the bounced cheques system.
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