Cheque Books

Cheque Books

One of the essential services provided by Arab Islamic Bank is the issuance of check books, as check books play an important role in easing customers' varied transactions. The customer, on the other hand, must appreciate the importance of providing him with check books, retain them, and understand the rules for utilizing them. As a result, special rules for the process of issuing check books to customers and managing their use have been developed in order to ensure the lowest possible level of returned checks on their accounts, protect them from the risks of having their names included on the automated returned check system, and protect the bank from any responsibilities or risks.

Cheque Book Standards

  1. A Cheque: is a document written in accordance with the conditions specified by law and includes an order issued by a person known as the drawer to another known as the drawee to pay a certain amount to a third person, to his order, or to the bearer of the check, who is the beneficiary, as soon as he sees the check.
  2. Cheque System: The Palestinian Monetary Authority's system of returned Cheque, system of consensual settlements, and stop-payment and lost Cheque.
  3. Stop-payment Cheque: A cheque whose payment is stopped at the request of the drawer after the full amount of the Cheque is withheld and the drawer signs the approved form for a stop-payment cheque.
  4. Lost Cheque: A check that is stopped at the drawer's request as a result of its loss or theft after the drawer provides the bank with a police report.
  5. Cheque System Users: Banks, specialized lending institutions, financial leasing firms, and any other entity authorized by the Palestinian Monetary Authority to utilize the system.
  6. Forgery: An artificial distortion of the truth in the facts and data in the original Cheque, whether accomplished by issuing a true copy of the cheque from an illicit source or tampering with the Cheque data with the intent of fraud to change its ownership, value, or features.
  7. Cheque security and technical specifications: consistent aspects, whether physical or technological, that are incorporated in the cheque’s composition.
  8. Cheque elements that can be changed: data edited by the Cheque drawer
  9. Cheque elements that cannot be changed: Data previously written on the cheque that do not require the drawer's updating
  10. MICR (Magnetic Ink Character Recognition): A strip at the bottom of a cheque that contains the check number, bank code, branch number, and customer account number.
  11. Levels of security and technical marks of the Cheque: The security and technological marks are classified into three levels:

The first level is "public": these are the security marks that are visible without the need for any auxiliary equipment (it does not need devices to detect the security mark). It is understood by the general public and ordinary people, and identifying it takes only a few seconds.

The second level, "Retailers and Teller Personnel": These are the security marks that concern Teller employees, retailers, and others. These marks can only be seen using microscopic magnification instruments, such as a lens or a microscope, or checked for originality by ultraviolet fluorescence, infrared reflection, or magnetic detection tools.

The third level, "Banks and experts at the issuing authority," These are the security marks that require experts from the issuing authority to detect the security mark, which is unique to the issuing banks and can only be detected by a certain party within the issuing banks.

Cheque Books Types

  1. Cheque books are issued in different currencies (dollars, dinars, NIS, and euros).
  2. Cheque books are only available in three distinct denominations: 10/20/50 sheets.

Automated Clearing System

Dear Clients,

Based on Monetary Authority Instruction No. (2020/125) about the progressive implementation of the automated clearing system, which is an electronic exchange of cheques between banks operating in Palestine and within Arab Islamic Bank branches alike.

This method intends to make it easier to transfer payments and collect cheque circulating between banks, and we would like to underline the following:

  • Cheques will be processed automatically as soon as they are submitted to the beneficiary's bank for clearing.
  • The need to receive and use cheques with new security marks and/or replace cheques without security marks immediately.
  • On the new system, sending cheques SMS will be discontinued because the cheques will be processed at the same time they are submitted.
  • An SMS will be sent only when the cheques is cashed or returned.
  • The account must be topped up one business day before the cheque’s due date to avoid the cheque being returned and to keep your status on the Monetary Authority's Bounced Checks System.
  • Manage your accounts using the Arab Islamic Bank's electronic services.
  • Before issuing or receiving a cheque, it is necessary to evaluate and audit the following technical aspects:
  • Avoid receiving or submitting any cheque whose details on the original check have been visibly amended, distorted, or destroyed without the drawer's signature.
    • The cheque must be issued in the same withdrawal currency as the currency sign shown on the Cheque.
    • The cheque shall only be written in Arabic and/or English.
    • Avoid writing the cheque in red or with a pencil
  • A request for an account statement must be submitted one working day before the due date of the cheque

Click here to visit the Monetary Authority's website for further information on cheque, security marks, and the automated clearing system.

Please call the authorized service center at 1 700 222 000 for additional information.

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