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Status quo remains on cheque rule
By Pratap John
Chief Business Reporter

The effective scrapping of the post-dated cheques system has been postponed until further official notice, Gulf Times has learnt.
The local banks were to have stopped honouring post-dated cheques from today in line with Article 580 of Qatar Commercial Law (Number 27 of 2006).
The provisions of the law stipulated that post-dated cheques can be cashed on presentation. It stated that “if a cheque is presented before the date set as its issuing date, it shall be paid on its presentation date”.
Sources yesterday said that banks in Qatar had now been asked by Qatar Central Bank (QCB) “to stop enforcement of the above-mentioned article and not to redeem any cheque before the date mentioned in it until a special mechanism is established”.
“We have been told we will have to continue honouring post-dated cheques until further notification. We cannot redeem any cheque before the date mentioned in it as per the new directive to local banks,” a senior banker told Gulf Times yesterday.
Earlier, local banks had started communicating with their customers about the provisions of the new law. A bank had written to their customers to “familiarise themselves” with the relevant article that is available on the QCB website.
Once the law takes effect, industry sources say, it will be the “drawer’s responsibility” to ensure he/she has sufficient funds before issuing a
cheque.
Sources said” “This will be kept in abeyance until further notification.”
It was unclear last night whether a new law or an amendment will have to be issued to support this measure.
A Doha-based businessman welcomed the directive “to stop enforcement of the above-mentioned article and not to redeem any cheque before the date mentioned in it, until a special mechanism is established”.
“It is a good move because the authorities concerned are trying to ensure that the provisions of the article are implemented properly. It is everyone’s duty to ensure that the provisions of the law, when implemented, are honoured completely,” he said.
A senior accountant with a Doha trading firm said: “We have contacted many banks following reports in newspapers about scrapping of the post-dated cheques system. While some banks said it will take effect on May 10, others said on May 13. We were confused.”