New rules governing check transactions have been apparently efficient in reducing bad checks, a lawmaker said, citing data released by the Central Bank of Iran.
According to Nasrollah Pejmanfar, the ratio of bad checks to total drawn checks stood at 6.2% for checks issued under new rules since the beginning of the current fiscal year (March 20, 2021) up until the end of 10th Iranian month on Jan. 20.
“This is 44% lower compared with the time before the new check transaction rules became law,” he was quoted as saying by IBENA, the news agency affiliated to Monetary and Banking Research Institute.
This is while the total ratio of bad checks to transacted checks was 8.2% during the period under review.
The new check law 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 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.
Drawing on CBI’s data exclusively sent to MPs, Pejmanfar pointed to the increasing use of checkbooks issued under the new check issuance rules.
“An estimated 38 million checks were issued under the new law, accounting for 52% of the total drawn checks,” he said. “That indicates the increasing impact of new check rules.”
The MP called on CBI to facilitate people’s access to the platform designed for registering checks.
Presently, registration of check data is possible only via internet bank or mobile bank portals. CBI has obliged banks and credit institutions to provide services to checkbook holders via the automatic teller machines (ATM). In addition, there are plans to register check data with short-service messages (SMS) to ensure better access to the service.
The new check rules ban checkbook holders from issuing "bearer checks".
Depriving unlawful checkbook-holders the right to loans and other bank facilities are also enshrined in the law. Access to checkbooks will become 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 check’s signatory.
