Move to decriminalise cheque bounce cases in UAE

It is a matter of big relief for several NRI businessmen in the country

PRAVASISAMWAD.COM

The UAE’s (United Arab Emirate) move to decriminalise bounced cheque cases has become topic of hot discussion the businessmen in the country, as many have issues with bounced cheques due to recession and closure of businesses during the pandemic.

According to the Hindu, the UAE is set to amend the Commercial Transaction Law that decriminalises bounced cheque cases. It is a matter of big relief for several NRI businessmen in the country. Under the current law they have to pay hefty fines and undergo imprisonment without trial, the report said.

“Criminalisation of bounced cheques due to insufficient funds in cases of fraud, forgery and bad faith will stay. Also, partial payment of cheques will become mandatory.”

A decree announcing the changes in the Commercial Transaction Law will come into force on January 2, 2022.

As per the current law, cheque-bounce is a criminal offence. The amendment in it will make it a civil offence that will allow the parties to discuss and resolve.

“One of the key changes is decriminalisation of cheques issued without sufficient funds. However, criminalisation of bounced cheques due to insufficient funds in cases of fraud, forgery and bad faith will stay. Also, partial payment of cheques will become mandatory,” the Hindu report said.

“The amendment is going to be a game changer. What used to be a dead-end for both the giver and receiver, has now hope. It is likely to change for the better how businesses work,” the report quoted Mohammed Hashim, an NRI in Dubai, said.

************************************************************************

Readers

These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.

Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world.  We have taken the small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.

Please help us to keep our journalism independent and free.

In these difficult times, to run a news website requires finances. While every contribution, big or small, will makes a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.

For more information: pravasisamwad00@gmail.com