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New law accepts post-dated cheques as mode of payment in Qatar
According to a new law(Law No 7 of 2010) issued to H H Sheikh Hamad bin Khalifa Al Thani, post-dated cheques will remain an accepted mode of payment in Qatar.
The new law will serve as an amendment to Commercial Law No.27 of 2006, putting an end of the confusion over post-dated cheques.
The amended law was announced on the day when the grace period for enforcing the relevant provisions of the earlier law was due to expire. It pressurizes banks to encash cheques prior to the date mentioned on it.
The new law emphasizes on the following: Cheques can be encashed immediately on presentation, and any statement contravening this can be deemed null and void.
If a date is mentioned on the cheque as issuing date, the banks may refuse to pay its value until the arrival of that date. If the bank made the encashment prior to that date, it will be responsible for the negative results from such an act.
The new amendment has clarified that a post-dated cheque should not be en-cashed prior to the date mentioned on it.
The law has been welcomed by the banking and business communities, as it could save the economy from the chaos which a ban on post-dated cheques could have created.
The amendment reflected the keenness of the state to ensure the stability of the banking sector and commercial transactions. All the banks have been issued a directive in these lines by the QCB.
The law is to be implemented will soon be published in the official gazette.
Posted on 17/5/2010
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