Central Bank of Iran data show slight decline in check transactions amid rise in rejected checks in the calendar month to Feb. 19.
During the period under review, the number of issued checks declined 3.5% to reach 6.3 million. In value terms the drawn checks were down 1.4% at 2,659 trillion rials ($9.84 billion).
Compared with the corresponding month last year, written checks fell 26.8% in number but jumped 30.7% in value.
More than two million checks worth 1,351 trillion rials ($5 billion) changed hands in Tehran Province in the month. Tehran was at the top accounting for 31.8% and 50.8% in volume and value of all drawn checks.
Isfahan Province was next representing 10.8% of all drawn checks and 7.7% of the value of checks.
About 327 trillion rials ($1.21 billion) worth of checks were rejected, 7.1% higher on the month before. Data showed that the number of bounced checks reached 567,000 in one month posting an increase of 2.7%.
Bounced checks accounted for 9% and 12.3% of the total volume and value of drawn checks. Bad checks in Tehran Province alone accounted for 8.1% and 9.4% of all checks issued in the capital in terms of volume and value, respectively.
During the period under review, the number of checks rejected in the capital reached 163,000 worth 127 trillion rials ($470.4 million).
Kohgilouyeh-Boyerahmad Province had the highest ratio of bounced checks to transacted checks at 15%. North Khorasan Province was next with a ratio of 13.8%.
Lorestan Province came in third with the highest ratio of bad checks to transacted checks at 13.4%.
Provinces with the lowest ratio were Gilan 6.8%, Alborz 7.8% share and Khuzestan 8.4%.
Insufficient funds in the accounts of issuers were said to be the main reason why the checks failed. During the month, more than 550,000 checks worth 317 trillion rials bounced because of not sufficient funds (NSFs.)
More than 5.7 million of all drawn checks were processed by banks in the month. The value of cleared checks was 2,332 trillion rials ($8.63 billion). Banks processed more than 428,000 cashier checks worth 2,948 trillion rials ($10.91 billion), down 5.9% in volume but 1.1% higher in value. More than 141,000 checks worth 2,343 trillion rials were cashed in the sprawling capital with a population of more than ten million.
A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier. Cashier's checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying.
