The value of bounced checks in the month to Sept. 21 jumped 7.9% compared to the earlier month to reach 205 trillion rials ($732 million).
The number of bad checks was 864,000 posting 8.8% growth compared with a month earlier, according to data released by the Central Bank of Iran. In terms of volume and value, bad checks accounted for 9.2% and 10.1% of all written checks, respectively.
In the reviewed period, 249,000 checks worth 90 trillion rials ($321.42m) bounced in Tehran accounting for 8.4% and 8.8% of volume and value of all transacted checks in the capital.
In volume terms, Kohgilouyeh-Boyerahmad Province topped the list of provinces with the highest ratio of bad checks to transacted checks at 15.3%.
Chaharmahal-Bakhtiari Province was next at 13.4% and Kurdistan Province third with a ratio of 12.9%.
Provinces with the lowest ratio were Gilan at 6.4%, Alborz 7.8% and Mazandaran 8.2%.
Insufficient funds in the accounts of issuers was the main reason why the checks were rejected. More than 834,000 checks worth 197 trillion rials bounced because of insufficient funds (NSFs).
Drawn Checks
More than 9.4 million checks worth 2,031 trillion rials ($7.25 billion) were drawn in the 30 days.
The number of drawn checks went up 10.5% and the value increased 4.7% compared to the previous month.
Out of the total checks drawn in the month, 3 million checks valued at 1,024 trillion rials ($3.65b) were issued in Tehran Province.
Tehran ranked first with the highest volume and value of drawn checks, accounting for 31.5% and 50.4% of all checks, respectively.
Isfahan Province was second both in volume and value, representing 10.7% of all drawn checks and 6.4% of the value of checks.
Around 649,000 cashier checks worth 1,314 trillion rials were cleared indicating 3.3% decline and 1.1% rise, respectively in volume and value.
More than 197,000 checks worth 774 trillion rials were cashed in Tehran. A cashier's check is a check guaranteed by a bank, drawn on the bank's own funds and signed by a cashier. Cashier's checks are treated as guaranteed funds because the bank, rather than the purchaser, is responsible for paying the amount.
The CBI report covered only interbank checks processed by Chekavak, a CBI-affiliated electronic check processing system, and did not include checks circulated within branches of a single bank.
