Sunday, August 22, 2010

UAE bounced cheques rise in Q1 but value falls 25%

The number of bounced cheques reported in the UAE in the first four months of 2010 rose but the amount of money involved declined by 25 percent, it was reported on 19th of Aug 2010.

The value of invalid cheques stood at AED18.6bn compared with AED24.8bn in the same period of 2009, Central Bank data showed.
This is despite the total number of bounced cheques rising more than 8 percent during the same period to 588,570 in the first four months of 2010, Emirates Business reported.
While that number equated to one in every 18 cheques for the first four months of 2009, it now stands closer to one in every 16 cheques, the UAE website added.

In November 2009, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum issued a decree to set up a bounced cheques committee which will settle cases related to dud cheques in real estate transactions.Judgments pronounced by the committee will be decisive and unchallengeable, and the committee will be granted “a set of powers in order to discharge its duties properly”, he said.
Under UAE law bouncing a cheque is a criminal offence, which carries a prison sentence, although most instances involving small amounts are settled out of court