Dubai: A leading bank in the UAE has warned its customers against accepting cheques that are not security-compliant as they will not be entertained by the bank.
In a recent circular issued to its customers, Emirates NBD Group Deputy CEO Jamal Bin Galita said banks in the UAE have introduced new security features with regard to cheques, demand drafts and other monetary instruments to reduce fraud.
The tamper-proof features are in keeping with the mandate of the UAE Central Bank and have been effective from March 1, 2010, he said. Under the new guidelines, "Emirates NBD cheques will carry the word CHEQUE in thermochromic ink in a band on the back, which is security-compliant. The word will fade when rubbed due to heat and reappear once it is cooled down," Bin Galita said.
Undertaking a must
Cheques issued by banks will also carry a warning band either on the front or the reverse side of the cheque, which lists one or more security features available with the instrument, he said.
While any non-compliant post-dated or undated cheque issued and held with the bank with respect to loans or other advances continue to be valid, instruments which are due for presenting beyond January 1, 2011, would have to be accompanied by an undertaking — available with the bank — which confirms that the non-compliant cheque was received before March 31, 2010, the circular said.
Those with unused chequebooks that do not have the new security features should safely destroy them, the circular urged, adding that customers could apply for new cheque books.
