Cheques

cheque law in dubai

Cheques in the UAE | Security Cheques | Bounce Cheque Law in Dubai

There has been much discussion relating to the issue of cheques in the UAE, particularly when related to security cheques. Historically, this has been a bone of contention for many where security cheques have been banked where the drawer would contest that it was done so correctly. A cheque can be made ‘conditional’ meaning specific requirements should be met before it can be encashed. If the drawer fails to fulfil any of the required conditions then he or she won’t be able to encash the cheque (note of caution, it will be valid after its due date). Below are some points you should know about cheques,

1- According to new rules, cheques are valid for 6 months from the date of issue.

2- The period to register a ‘bounced’ cheque complaint can be up to 5 years beginning from the day the drawer issued it to the beneficiary.

3- If the holder of the account signs his cheque and leaves it blank for the amount to be drawn and the due date to be entered, they are tacitly authorizing the beneficiary to fill those details in as required.

4- The person signing a company cheque is legally responsible for its validity even after he or she leaves the company.

5- Alteration of cheques is strictly forbidden by banks to avoid fraud.

6- In the event not enough funds are available in the account for the amount of an issued cheque, a request can be made to pay the remaining partial amount to the beneficiary

7- The cheque, if bounced can be considered a criminal act. This includes insufficient funds in the account, deliberately writing the cheque in such a way as to make it invalid, making an order to the bank not to make a payment or issuing a cheque from a closed account.

8- If you lose any of your cheques, you should use the stop payment facility offered by the banks to avoid issues arising from anyone misusing them.

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2 thoughts on “Cheques

  1. Pingback: Is Bounced Cheque a Criminal Case in UAE | Dubai Bounced Cheque Law

  2. Pingback: BOUNCED CHEQUES LAW IN UAE | CHEQUES REGULATIONS IN UAE

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