New rule for UAE banks on issuing chequebooks
Getting cheques from a bank in the UAE will now require a credit check, following a decision by the UAE Central Bank. The move is aimed at improving responsible lending practices by banks.
The decision, reported yesterday by state-agency WAM, says local banks must check “with the Al Etihad Credit Bureau to ensure the creditworthiness of their customers.” It was not immediately clear how either the credit union or the banks would determine whether a customer was worthy, although the statement did say that cheques that had been returned due to insufficient funds would negatively affect the customer’s credit rating.
New customers will be limited to 10 cheques and will only be eligible for additional cheques after six months. The UAE Central Bank is also encouraging banks to advise their customers to minimise the use of cheques and consider other payment methods such as direct debits and bank transfers where possible.
Bad cheques have historically been an issue for the banking industry in the UAE, due to the often transitory nature of expats and easy availability of banking services. The decision comes after 310,000 cheques worth more than Dh15.7 billion bounced in the first quarter of this year.
■
The Zayed Sustainability Prize’s “Guiding Light” campaign has arrived in Bolivia, and will result in the donation of 2,000 solar lanterns to off-grid communities in the Municipality of San Juan.
The 20x20 metre light installation, revealing the Prize logo, was lit up at the Unidad Educativa Sagrado Corazon 4, in San Juan; the 2017 Global High Schools category Prize Winner, said a press release yesterday.
Launched in Bahrain on December 5, the global campaign is running from December 5 to January 9. The remaining three events will be held in Bangladesh on December 18, Kenya on January 6 and Abu Dhabi on January 9.