Economy, Business And Markets

New Motion on Checks

New Motion on ChecksNew Motion on Checks

The economic committee of the parliament is preparing a new motion to reform the process of issuing bank checks, according to the Islamic Consultative Assembly News Agency (ICANA). The proposal aims to overcome weaknesses of the current regulations which allow a given check owner to write it at any amount, even if they have no credit. Lawmakers argue that such a trend has led a hike in the number of bounced checks.  Mohammad-Hossein Mirmohammadi, a committee member, said the motion would demand banks issue check books in different colors, based on depositors’ financial credit level. The move, he said, will help the receiver of the check be aware of the owner’s credit status. Moreover, the motion would make banks more accountable when it comes to bounced checks, urging them to tighten their supervision.