The customer is prohibited from receiving a check book from any bank during the penalty period

4 bounced checks close the account for up to 3 years in the "issuing bank"

Dealers are required to ensure that they have sufficient balances in their accounts.

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A high-ranking banking source, who preferred not to be named, told "Emirates Today" that the Central Bank's instructions to close the bank accounts of customers who are returned to them four checks because they do not have sufficient balances are limited to the accounts in the bank issuing the checks that were returned, without other banks. Other, meaning that bank accounts in other banks will not be affected.

The source cautioned that informing Al-Etihad Credit Bureau of the returned checks, and their appearance in the credit report, prevents the customer from obtaining any new checkbooks from any bank, until the end of the penalty period, and that the customer will not be able to open new bank accounts in the bank issuing the checks Returned, except after a period of two years, and extends to three years, upon recurrence.

The banking source appealed to dealers to ensure that they have sufficient balances in their bank accounts, in order to avoid these procedures, which banks will not tolerate in implementing as of January 2022. He said: "The administrative penalties that the banks will apply will be strict."

It is noteworthy that the Central Bank said in official clarifications last week, “People to whom at least four checks are returned, due to insufficient balance during a maximum period of one year between the first check and the fourth check, in this case, their accounts must be closed for two years, and upon recurrence it increases to Closing the account for three years, and recovering the remaining number of checks they have.”

He added that the mechanism for notifying Al Etihad Credit Bureau of returned or partially paid checks is the same mechanism currently used, as well as for the credit information report.

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