Cheques are now the equivalent of cash. Refer below.
Local banks have started to alert customers ahead of next week’s implementation of a new law stipulating that post-dated cheques can be cashed on presentation.
The Article 580 of Qatar Commercial Law (No 27 of 2006), which makes cheques “payable at sight”, states that “if a cheque is presented before the date set as its issuing date, it shall be paid on its presentation date”.
This means that if the bank is presented with a cheque, which has been issued on a post-dated basis (commonly known as post-dated cheque), the holder can present it for payment immediately and not have to wait until the post-date on the cheque to encash it.
The system of issuing post-dated cheques will get scrapped with the law taking effect, a senior banker told Gulf Times yesterday.
He said Qatar Central Bank had already notified the local banks about the relevant provisions of the Commercial Law of Qatar taking effect.
Local banks have started communicating with their customers about the provisions of the new law.
Sources at International Islamic said: “We will fully comply with the laws of the land and it is our policy to educate our customers about these.”
When contacted, HSBC Qatar said: “HSBC always complies in full with both the letter and spirit of the relevant legislation and regulation everywhere it conducts business. With regard to Article 580 of the Commercial Law (No 27) relating to post-dated cheques, HSBC is communicating the requirements of the new law to customers and recommends that customers familiarise themselves with the relevant article that is available on the Qatar Central Bank 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. This means that those with insufficient funds in his/her account to cover the value of a cheque that is presented for payment can be subject to criminal liability.
Legal expert Nizar Kochery said drawers of cheques would no longer be able to rely on their instruments being cashed on or after a “future date”.
He said: “A cheque is the equivalent of cash. While a cheque facilitates easy handling, the drawer must issue it with full seriousness, fully abiding with the laws of the land.
“The days of post-dated cheques have gone. Cheques can be presented for payment anytime after they are handed over to the drawee. The banks will be required to honour and pay the cheques immediately on presentation,” Kochery said.
The Qatar News Agency (QNA) yesterday said the weekly Cabinet meeting had taken “necessary procedures for the issuance of a draft law amending some provisions of the Commercial Law (No 27 of 2006), after reviewing a relevant Advisory Council recommendation”.
Cheques are now the equivalent of cash. Refer below.
Local banks have started to alert customers ahead of next week’s implementation of a new law stipulating that post-dated cheques can be cashed on presentation.
The Article 580 of Qatar Commercial Law (No 27 of 2006), which makes cheques “payable at sight”, states that “if a cheque is presented before the date set as its issuing date, it shall be paid on its presentation date”.
This means that if the bank is presented with a cheque, which has been issued on a post-dated basis (commonly known as post-dated cheque), the holder can present it for payment immediately and not have to wait until the post-date on the cheque to encash it.
The system of issuing post-dated cheques will get scrapped with the law taking effect, a senior banker told Gulf Times yesterday.
He said Qatar Central Bank had already notified the local banks about the relevant provisions of the Commercial Law of Qatar taking effect.
Local banks have started communicating with their customers about the provisions of the new law.
Sources at International Islamic said: “We will fully comply with the laws of the land and it is our policy to educate our customers about these.”
When contacted, HSBC Qatar said: “HSBC always complies in full with both the letter and spirit of the relevant legislation and regulation everywhere it conducts business. With regard to Article 580 of the Commercial Law (No 27) relating to post-dated cheques, HSBC is communicating the requirements of the new law to customers and recommends that customers familiarise themselves with the relevant article that is available on the Qatar Central Bank 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. This means that those with insufficient funds in his/her account to cover the value of a cheque that is presented for payment can be subject to criminal liability.
Legal expert Nizar Kochery said drawers of cheques would no longer be able to rely on their instruments being cashed on or after a “future date”.
He said: “A cheque is the equivalent of cash. While a cheque facilitates easy handling, the drawer must issue it with full seriousness, fully abiding with the laws of the land.
“The days of post-dated cheques have gone. Cheques can be presented for payment anytime after they are handed over to the drawee. The banks will be required to honour and pay the cheques immediately on presentation,” Kochery said.
The Qatar News Agency (QNA) yesterday said the weekly Cabinet meeting had taken “necessary procedures for the issuance of a draft law amending some provisions of the Commercial Law (No 27 of 2006), after reviewing a relevant Advisory Council recommendation”.