The Central Bank of Iran says checks issued under new rules are gaining traction among the people.
According to Ameneh Nadali-Zadeh, head of the CBI Payment Systems Department, new checks accounted for 60% of the total checks passed by the end of the last fiscal year on March 20.
“This is while until Sept. 2021 25% of the checks were issued under new check rules,” she was quoted as saying by the CBI website.
The new check law came into force in March 2021 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, amount and ID of the beneficiary with the ‘Sayyad’ platform. Sayyad is a special system designed to run a credibility check on account holders wanting to write a check.
Nadali-Zadeh said an estimated 180 million checks have been handled by banks so far of which 65 million were issued by checkbook holders and registered with Sayyad.
The new check rules have helped reduce bounced checks, according to the CBI official. “The ratio of bounced checks to total transacted checks was 9.1% at the end of the last fiscal year,” she said. “The ratio of bad checks under the new rules was 6.1% and for checks issued under past rules 10%.”
Banks do not accept checks not registered on the platform. The Sayyad system is accessible to check holders via bank internet gateways, cellphone applications, automatic machine tellers and short message services (SMS).
Depriving unlawful checkbook-holders the right to borrow and other bank financial facilities are enshrined in the amended check law. Access to checkbooks is not easy and the eligibility and affordability of applicants is subject to stringent investigations.
The rules stipulate tougher measures against defaulters. If a check bounces due to insufficient funds, courts can seize the amount from other bank accounts and/or assets of the signatory of the check.
