The number of bad checks has declined by half thanks to the new check rules, according to an official with the Central Bank of Iran.
In a talk with IRIB news, Ameneh Nadali-Zadeh, the deputy at the CBI Payment Systems Department, said that the percentage of bounced checks issued under new rules was 4.6% since the beginning of the fiscal year (March 21) up until July 21.
“This is while 9% of checks issued by owners of old checkbooks were rejected in the period. This shows that the new check rules have been successful,” she was quoted as saying.
The new check law became came into force on March 25 to help foster transparency and curb bad and forged checks.
As per the new rules, check-holders are obliged to register data on electronic portals created by the CBI. Check issuers are required to register data such as date of issuance, sum, and identity of the beneficiary with the Sayyad platform. Sayyad is a system designed to run a credibility check on account holders wanting to write a check.
Nadali-Zadeh said an estimated 60 million checks have been issued by bank customers so far and 10 million, or 16%, of which are registered with Sayyad.
Banks do not process checks that are not registered on this platform. The Sayyad system is accessible to check holders via banks’ internet gateways as well as cellphone applications.
The law also bans checkbook holders from issuing "bearer checks". As the name suggests, bearer checks are payable to the person who brings the check to the bank.
In addition, the new rules penalize those who acquire a checkbook through fraudulent means and bank staff who violate the law.
Depriving unlawful checkbook-holders the right to loans and other bank facilities are also enshrined in the law. Access to checkbooks will be difficult and the eligibility and credibility of applicants will be more carefully verified.
Rules also stipulate tougher measures for defaulters. If a check bounces due to insufficient funds, courts are authorized to seize the amount from other assets of the signatory of the check.
