Ignorance of the law, a threat to the holders of new checks

According to statistics provided by the Central Bank, the number of returned checks in September compared to the same month last year decreased by about 18 percent, but the amount of returned checks increased by about 53 percent compared to last year.

The introduction of fishing checks and the significant changes that have taken place in check exchanges since the beginning of the year may be partly related to the mentioned figures. Central Bank officials believe that the number of returned checks has decreased with the changes.

On the other hand, some banking experts believe that fishing checks have not yet found their place in economic exchanges, and many businesses still do not know enough about how to register these checks, and therefore refuse to use checks. In addition, field observations indicate that some market participants, traders, and shopkeepers have been caught in a series of scams due to their ignorance of the nature of the new checks and how to register them.

What are the characteristics of fishing checks?

The law “Amending the Law on Issuance of Checks” was approved by the Islamic Consultative Assembly in November 1997 and was notified to the executive bodies in December of the same year. The law defines responsibilities for the central bank, operating banks, the judiciary, and the Ministry of Economy, but unfortunately a significant portion of these tasks, such as issuing electronic checks or validating checkbook holders, have not yet been implemented.

According to the central bank, the new check law will apply to new purple checks that have been on the market since the beginning of this year. On these checks, the words “The operation of this check is subject to the registration, issuance, receipt and transfer of it in the fishing system” can be seen, and at the top and left of each check is a unique 16-digit ID.

The issuer of the fishing check must record the contents of the check, including the date of “maturity”, “amount” and “identity information” of the beneficiary, in addition to entering it on the check sheet in the fishing system. Also, the recipient of the check, when receiving the check, must match its contents in the fishing system, inquire and match the contents of the check.

Accordingly, from the beginning of April of this year, the persons who intend to transfer the check no longer need to endorse the check and must register the identity of the new beneficiary in the hunter system; Because according to the new law, new checks should not be issued to the bearer.

It is possible to register and transfer checks through the means of accessing the Sayad system, including Internet banking, mobile banking, mobile payment applications, as well as operating bank branches. Other tools used to provide check registration services, including SMS tools and ATMs, are also expected to be made available to the public soon, as promised by central bank officials.

Immediate inquiry for check recipients

Check inquiry service that in order to ensure the recipients of the check that the check system is registered in the fishing system by the check issuer with a simple and easy use in the submenu “Payment systems and infrastructure” and under the title “Check inquiry based on check information items” at https: / /www.cbi.ir/EstelamPichak/22036.aspx has been made available to the public.

Recipients of checks can visit the website and enter the check ID of the check to ensure that the check is registered in their favor by the issuer of the check. This service is mostly used by distribution companies, marketers and people who receive a large number of checks during the day. This service is in fact an immediate and fast inquiry that is done at the moment of check exchange and is to ensure that the issuer has registered the check.

Blocking all issuing bank accounts in favor of the recipient of the check

According to the new check law, in case of insufficient balance of the check issuing account, banks are obliged to pay from other debit accounts, in priority order: “current account”, “good loan account”, “short-term and long-term investment deposit”.

If the balance of other accounts is not enough, in the next step, all the accounts issuing the check in all banks and credit institutions will be blocked by the central bank in the amount of the check deficit after 24 hours from the registration of the check return.

Finally, in case of lack of sufficient balance in the whole banking system, the holder of the returned check can refer to the offices of electronic judicial services with a certificate of non-payment and request the issuance of an executive order from the competent court. Of course, this part of the Czech law is not currently fully implemented in the country’s banking network.

Some important provisions of the Czech law have not yet been implemented!

“Validation and setting a credit limit for check holders”, “Enabling the issuance of electronic checks and case checks” and “Preventing the system from receiving and issuing new checks for bankrupts, insolvent persons or persons with judicial prohibition” Returning checks to banks and credit institutions is one of the most important provisions of the new check law, which remains unresolved.

Ali Salehabadi, the governor of the Central Bank, recently said in response to why some of the tasks set out in the new Czech law have not been implemented so far: “Only the remaining six tasks of the new law require more and more technical work.” We recently formed a working group.

Salehabadi promised the media that before the end of October, they would be informed about the details of the remaining tasks and the time of their implementation.

“Ignorance” and “forgiveness” are the root of illegality in bank branches

Some bank branches may refuse to perform any of the above steps due to “ignorance” or “forgiveness”; Therefore, check holders should be fully aware of their law and rights about checks.

Registering a check system will greatly reduce the possibility of forgery and fraud. Another feature of the system registration is that if the issuer of the first check has issued its misplaced, it can no longer issue its second check, and therefore this will reduce the number of returned checks.

ILNA