Post-dated cheques....
Status quo remains on cheque rule
By Pratap John
Chief Business Reporter
The effective scrapping of the post-dated cheques system has been postponed until further official notice, Gulf Times has learnt.
The local banks were to have stopped honouring post-dated cheques from today in line with Article 580 of Qatar Commercial Law (Number 27 of 2006).
The provisions of the law stipulated that post-dated cheques can be cashed on presentation. It stated that “if a cheque is presented before the date set as its issuing date, it shall be paid on its presentation date”.
Sources yesterday said that banks in Qatar had now been asked by Qatar Central Bank (QCB) “to stop enforcement of the above-mentioned article and not to redeem any cheque before the date mentioned in it until a special mechanism is established”.
“We have been told we will have to continue honouring post-dated cheques until further notification. We cannot redeem any cheque before the date mentioned in it as per the new directive to local banks,” a senior banker told Gulf Times yesterday.
Earlier, local banks had started communicating with their customers about the provisions of the new law. A bank had written to their customers to “familiarise themselves” with the relevant article that is available on the QCB website.
Once the law takes effect, industry sources say, it will be the “drawer’s responsibility” to ensure he/she has sufficient funds before issuing a
cheque.
Sources said” “This will be kept in abeyance until further notification.”
It was unclear last night whether a new law or an amendment will have to be issued to support this measure.
A Doha-based businessman welcomed the directive “to stop enforcement of the above-mentioned article and not to redeem any cheque before the date mentioned in it, until a special mechanism is established”.
“It is a good move because the authorities concerned are trying to ensure that the provisions of the article are implemented properly. It is everyone’s duty to ensure that the provisions of the law, when implemented, are honoured completely,” he said.
A senior accountant with a Doha trading firm said: “We have contacted many banks following reports in newspapers about scrapping of the post-dated cheques system. While some banks said it will take effect on May 10, others said on May 13. We were confused.”
here the bank can make the payment if it deems ok. else they will release it only on the written date not a day early not a day late.
.."If a cheque is presented before its issuing date, the instrument shall be paid on its presentation date. In this case the bank may refuse to pay its value until the arrival of the day set as the issuing date." Is it just my imagination or don't these statements like cancel each other out??? So what is the point of changing the rules of PDC?
and pardon my poor education in the world of financial system.... I have not heard this kind of economy before where the rule of the PDC can be reverese any time.
First, let us scrutinize keenly. What are PDCs for? for security purposes and for payment in the future of an account - accrued or non accrued or for the consumed transactions
What about if the PDC is payment for an accrued account which will only be materialized in the future? Imagine the scenario, the seller/vendor has already cashed in and taken your money prior to the consumation of the trading?
In which ever angle you look at it, PDC is for future payments. What are PDCs for if these are encashable anytime?
New law on cheques’ encashment issued
Publish Date: Friday,14 May, 2010, at 01:44 AM Doha Time
HH the Emir Sheikh Hamad bin Khalifa al-Thani issued yesterday Law No. 7 of 2010 amending some provisions of the commercial law issued by Law No. l27 of 2006. According to the new law, article 580 of the abovementioned commercial law shall be replaced by the following: Cheques shall be encashed immediately on presentation and any statement contravening this shall be deemed null and void. If a cheque is presented before its issuing date, the instrument shall be paid on its presentation date. In this case the bank may refuse to pay its value until the arrival of the day set as the issuing date. If the bank makes the encashment before that date it shall be deemed responsible for the harm resulting from such a move. The law is to be implemented and is to be published in the official gazette.
well, nobody can assure anyone that the "not evil" landlord will not do exactly that...encash all the checks at one time. he's got the legal right to do so. meanwhile, guess who gets efd?
what a cluster of f..k
jamesbond,
The tenants need to understand that landlords are not evil, and won't take all your checks to the bank today :P
well the landlords need to understand that most of us who rent a place are ordinary people who earn a salary after a month of hardwork, hence we can pay monthly rent and not in one go and apart from the rent there are other utility expenses that have to be taken care of.
"LIVE & LET LIVE"
ntasa...
Arabic is the language of Qatar, if you want to understand it, you have two options:
1- Learn Arabic.
2- Get a translator.
the contracts are all in arabic.. you only have to believe whateva landlord promises .. afterall we are at mercy of him
those who know how to write dont know how to read.
Yeah, most of them can't even write.
they try to play a safe game and definitely no one will give letter
for rental posted cheque the owner must give a promise writing letter to the tenant saying that the posted cheque will be cash only a merited date.thx
they said they will take as per the date and not at one go
covered here.
http://www.qatarliving.com/node/1023876#new
Good....finally they realized that it wont work!!