ABU DHABI - UAE Central Bank said today that it has obtained a Decision by the Ministerial Council for Services to include images of cheques sent to the Central Bank electronically, among tools that are subject to the provisions of Federal Law No. (1) of 2006 concerning Electronic Transactions and Commerce, and as document of proof before the UAE courts of law.
The decision based on the text of Article 2.3 of the said Law, also said that the electronic images can be accepted provided that original physical cheques are kept with banks for cheque forgery case proceedings, as needed.
“Therefore, it has been decided to stop the sorting and exchange process of physical cheques at the Central Bank in Abu Dhabi and Dubai, starting from 29 February 2012”, said a circular sent to all banks operating in the UAE.
ICCS member banks have to keep the original physical cheques deposited with them for collection and stamp the same with the following statement, before sending cheque images electronically to the Image Cheque Clearing System, said the circular:.
“True copy of cheque deposited with (xxxx) that undertakes to present it upon request”
The enhancement of the electronic image cheque clearing procedures shall cut costs relating to cheque clearing and improve the collection time.
The UAECB also asked all banks to comply with the above requirements, keep the physical original cheques deposited with them for the legally binding period and present them upon request, starting from Wednesday 29 February 2012.
The Central Bank said that it is constantly endeavoring to develop and enhance services provided to banks and other financial institutions operating in the UAE, for the purpose of providing faster and more advanced services.