January 6, 2021 banking

New procedures to be followed for bounced cheques


The Central Bank of Kuwait has instructed banks to adopt a new mechanism to send reminders to customers if their cheques are returned due to insufficient funds in their accounts, in light of the correspondence between the Central Bank and the Federation of Kuwait Banks and local banks, Al Rai daily reported.

The Central Bank stated that the approved mechanism, as a minimum, stipulates that if the first cheque is returned, the concerned bank must send a warning letter via registered mail, in addition to sending a copy of the warning letter via the e-mail of the customer approved by the bank

He added that in the event that the second cheque is returned, a warning letter will be sent via registered mail, and a copy of the book will be sent via the e-mail of the customer approved by the bank, in addition to calling the customer through the call center at the bank, and the phone calls are recorded. The customer is expected to respond to the phone call. An SMS is also sent to inform the customer the cheque has been returned.

The Central Bank stressed the need for banks to follow the aforementioned mechanism as of the beginning of this year, provided that the use of other means, such as notifications from phones and other modern means of communication, would be optional according to the bank’s discretion.

This step comes within the framework of keeping pace with technological developments and making use of modern technologies, to communicate with bank customers in a fast and effective way when directing warnings. This also overcomes the difficulties faced by banks in communicating with their customers through postal correspondence and directing reminder warnings in the event that cheques of these customers are returned for insufficient funds in their accounts.

timeskuwait



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