Qatar Central Bank sets new rules to limit the phenomenon of 'bounced checks'

Qatar Central Bank (QCB) has issued new instructions and controls to banks to limit the phenomenon of bounced checks.

Under the new rules, banks will be permitted to inquire more about their customers and view their transaction history, in relation to fulfilling financial obligations, before deciding to issue checkbooks to them.

In this regard, a new central system was launched by His Excellency the QCB Governor Sheikh Abdulla bin Saoud Al Thani.

QCB issued new instructions and controls to limit the phenomenon of bounced checks allowing banks to inquire about their customers and view the history of their transactions. #QNA pic.twitter.com/yWemJ74Dex

— Qatar News Agency (@QNAEnglish) November 1, 2020

The new central system, run via the Qatar Credit Bureau, will comprise the data of customers from all banks who issued bounced checks because of nil or insufficient funds.

The Qatar Credit Bureau will manage the list of names of all individuals and companies who issued at least one bounced check due to nil or insufficient balance in any of the banks across the country.

The new QCB rules make it mandatory for banks not to issue or deliver new checkbooks to the individuals or companies whose names are included in the Qatar Credit Bureau list until the customer has settled the amount of the bounced check and the name has been removed from the list of bounced checks.

Additionally, banks are also required to list their customers, who have issued bounced checks because of nil or insufficient balance or any other reason, which prevents disbursement including the difference in the signature in the report of the bounced checks at the Qatar Credit Bureau.

This must be done within a date no later than the second working day so the center’s database on individuals and companies at the state level can be updated.

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Source: QNA