The United Arab Emirates central bank will introduce a direct debit payment system on June 15, bringing an end to the practice of requesting a blank cheque for payment in the Gulf state.
“The implementation of direct debit will enable customers to make regular, automatic payments from their banks accounts towards mortgage loans or credit card payments or personal loans installments,” the bank said in a statement.
In the UAE writing cheques that bounce is a criminal offence instead of a civil one.
The move is designed to eliminate the need for post-dated cheques, which are frequently used as a guarantee by businesses and individuals for everything from apartment rentals to multi-billion dollar deal.
Read more: http://www.arabianbusiness.com/uae-central-bank-introduces-direct-debit-deadline-496208.html
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