Mahchak system was unveiled Financial news

According to the report of monetary financial news, citing the public relations of the central bank, in line with the implementation of paragraph b, article 5 of the frequent check issuance law, this bank has started the necessary planning and after taking extensive measures, related technical infrastructures to change the status of blocking operations in the order exchange system. Judiciary was provided from offline to online. The set of these infrastructures led to the launch of the “Mahchak” system with the ability to use online inquiry, blocking and unblocking of bank accounts, and it was put into operation on a trial basis from June 7th of this year.

The reduction of the action time to remove the bad effect of the check, along with the increase in the total value of the bad checked checks, only less than 3 months after the trial implementation of the countermeasure system (blocking the accounts of returned checks), shows the significant effect of these measures in reducing the costs of economic transactions and increasing the validity of the check. It is in the country. In such a way, the average time to remove 80% of the number of bounced checks has decreased by 63% from 40 days to 15 days. Also, the average time to remove the bad effect of these checks has decreased by 90% from 37 days to 3 days.

It should be mentioned that before the launch of this system, the total amount of returned checks that were corrected by check issuers was about 60%. Currently, this ratio has reached 85%.

Therefore, according to the report, the number of processed checks to the total returned checks in the Mahchak system increased from 22% at the beginning of the system’s launch to 100% of checks after seven weeks.

So far, 1.1 million bounced checks have been processed in this system, of which 5.2 million accounts belonging to bounced check issuers in the amount of 17 thousand billion Tomans have been blocked so far.

In the same period, 3 and a half million accounts with the amount of 14 thousand billion Tomans have been blocked after going through the process of removing the bad effects.

The Mahchak system and the implementation of the new check issuance law have also had a significant effect in reducing the time to take action to eliminate the bad effect of the check; At the beginning of 2018, people issuing bounced checks took an average of 150 days to remove the bad effects of the check, but this time has now decreased to less than a month.

The working method of the Mahchak system is that after the non-payability or deficit of the check amount, the returned check information is registered by the bank or credit institution in the central bank’s integrated system (Samacheck) and the tracking code is received. After 24 hours of registering the information and if the bad effect of the check is not removed, the matter will be notified to the Mahchak system. The Mahchak system inquires the balance of all accounts of check issuers and signatories from the banking network and based on the inquired balance, it performs the operation of blocking the funds of the accounts to the amount of the check amount deficit based on the specified priority for the accounts.
In the case of registering the cancellation of the returned check in the Samachak system, the process of unfreezing all funds blocked by the Mahchak system will begin.

It should be noted that after twenty-four hours have passed since the return of the check has been registered in the Central Bank system, in addition to blocking the funds of all the accounts of the check issuer with the banking network to the amount of the check deficit, it is possible to open any account and issue a new bank card, pay any bank facilities. There is no issuance of foreign currency or Riyal guarantee and opening of foreign currency or Riyal letter of credit for issuers of returned checks.

Issuers and beneficiaries of returned checks can refer to the website of Central Bank at the address www.cbi.ir, In the footer section of the website (https://www.cbi.ir/InquiryMahCheque/23586.aspx), Find out about the mentioned amounts from the section “Inquiry of blocked amounts of accounts due to returned checks”.