Qatar Central Bank has issued fresh instructions to limit the issue of bounced cheques, wherein the banks are permitted to inquire about their customers and view the history of their transaction in terms of fulfilling financial obligations, so that the banks can take necessary decisions before issuing chequebooks.
The QCB Governor, H E Sheikh Abdulla bin Saoud Al-Thani unveiled a new central system to inquire about bounced cheques through the Qatar Credit Bureau, which includes all bank data of the customers who issued bounced cheques due to nil or insufficient balance across the country.
According to the latest instructions, the QCB reports in which names of each individuals and companies that issued at least one cheque are listed and are bounced due to nil or insufficient balance in any of the banks operating in Qatar. The banks are obligated not to issue or deliver fresh chequebooks to those whose names are listed in the reports, provided, the amount in the bounced cheque is settled and the name is removed from the list of bounced cheques at the centre.
The fresh instructions also oblige banks to list their customers who issued bounced cheques due to nil or insufficient balance, or in case of any other such reason that prevents disbursement, like for example, difference in signature. The matter should be intimated to QCB no later than second working day so that the same could be fed into the database of the centre with updated information on individuals and companies at the state level.
This will make it easier to take appropriate decisions on requests for chequebook issuance that clients submit to various banks.