Same day clearance for UAE cheques

DUBAI - Banks in the UAE will clear cheques on the same day starting Nov. 14, significantly reducing the time it takes for money to be credited to a customer’s account, local daily Emirates Business reported on Thursday.

The UAE Central Bank has told banks in the country to use an inter-bank electronic system that enables quick authorisation from the bank on which the cheque has been drawn, the paper reported.

“Cheques deposited in banks before 10 a.m. will be cleared by 5 p.m. on the same business day. Cheques deposited after 10 a.m. will be cleared the next business day," the Central Bank said a statement quoted by the paper.

The Image Cheque Clearing System (ICCS), which has been in use since July 2008 and now processes an average of 100,000 cheques per day, allows a bank that has the cheque in its possession to send the scanned copy electronically to the issuing bank for authorisation, the paper said.