Business And Markets

CBI to Ease Check Status Inquiry Check

CBI to Ease Check Status Inquiry Check
CBI to Ease Check Status Inquiry Check

The Central Bank of Iran says it will eliminate the identification requirement when bank customer enquire about the status of checks to help customers make sure about the validity of checks more easily.
Mehran Moharramian, the CBI deputy for innovative technologies, made the announcement in a meeting of the Government-Private Sector Dialogue Council hosted by the Tehran Chamber of Industries, Mining, Trade and Agriculture on Sunday.
"It will let bank customers make sure that issuers have registered their checks with the Sayyad portal without going through the identification process," the CBI website quoted him as saying.
Currently check status inquiry is possible only via internet bank or mobile bank portals, which requires users to sign in. Banks' portals does not allow users grant customized access to their employees. This has created problems for corporate business account holders to enquire about the status of checks.
"Once the system is launched, customers can get information about the status of checks on Sayyad platform via the CBI website, payment applications and SMS from banks," he said.
The official noted that the CBI is striving to address the shortcomings of the newly-launched Sayyad platform and render it user-friendly.
In March the CBI unveiled new rules on check transactions to improve transparency and curb rubber and forged checks.  It unveiled checkbooks designed to comply with the new stringent rules.
As per the new rules, check holders are obliged to register their complete ID on electronic portals created by the CBI. Banks will not process checks that are not registered on the designated portals.
The CBI has designed an integrated electronic system and streamlined electronic check-processing platforms, namely ‘Sayyad’ and ‘Chekavak’ for digital checks.
Sayyad is a system designed to run a credibility check on account holders wanting to write a check.  Chekavak is an electronic check processing system for eliminating the physical circulation of checks and help improve their credibility.
Banks do not accept checks not registered on these portals. The Sayyad system is accessible to check holders via banks’ internet gateways and cellphone applications.     
The law also bans checkbook holders from issuing bearer checks.
Customers’ unfamiliarity with the new and cumbersome banking rules resulted in a decline in the number of issued checks. More than 6.9 million checks worth 1,480 trillion rials ($6.7 billion) were handled in month to April 20 -- down 27.8% in number and 42.7% in value compared to the month earlier.   
CBI officials had expressed concern about lack of public awareness about the new rules that demand strict terms for check issuance, clearance and endorsement.
However, with clients gradually getting accustomed to the new rules, the volume of registered data on electronic check transactions platforms has increased.
During month to May 20, the number of issued checks rose 7.6% monthly to reach 7.5 million. In value terms the transacted checks rose 31.3% to stand at 1,943 trillion rials ($7.77 billion), the CBI said.

Caption: During month to May 20, the number of issued checks rose 7.6% monthly to reach 7.5 million.


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