New cheque regulations introduced in UAE
Banks in the UAE must now carry out credit checks before issuing cheque books.
Financial institutions across the country were sent a circular from the UAE Central Bank outlining the new directive.
The move is aimed at improving responsible lending practices by banks.
Furthermore, chequebooks issued to new customers must now only contain a maximum of 10 individual cheques.
Apparently 1.4 million out of the 30 million cheques that are processed in the UAE every year, bounce.
Marwan Lutfi, CEO of Al Etihad Credit Bureau, told Dubai Eye 103.8’s Business Breakfast that the new regulations will lead to more responsible lending.
Meanwhile, residents have reacted to the news that new customers would only receive a limited number of cheques.
This tenant explains what issues it could cause him.