Manama, Kingdom of Bahrain - 3rd August 2009 -The Central Bank of Bahrain (CBB) is pleased to announce the introduction of a uniform set of cheque standards and specifications for designing and printing of cheques which are processed through the clearing system.
"Introduction of a uniform set of standards and specifications for cheques is a major step towards increasing efficiency of the current cheque clearing process and modernizing the cheque clearing system, said Sh. Salman Bin Isa Al-Khalifa, the Executive Director - Banking Operations at the CBB.
With the implementation of these standards and specifications, there will be only one standard size for all cheques. The length of the cheque will be seven inches and the height will be three and a half inches. The standardization of the size of the cheque will help speed up the cheque clearing process and increase efficiency of cheque clearing, storing physical cheques as well as archiving cheque images under the CTS.
The new cheque standards and specifications are comprehensive and include standards for cheque design, layout, security features, physical characteristics of the cheque paper and printing. The new design and the structured layout will help easily identify the information on the cheque (such as the name of the drawee bank/branch, amount, date, signature, name of the payee and drawer details) by the human eye or equipment.
These standards help ensure high quality images of cheques. Accordingly, the cheques which will be printed complying with new standards and specifications, can be processed accurately and efficiently by the current cheque clearing system.
These standards have been prepared by the CBB in consultation with banks and major printing presses.
Banks have to adopt the new standards and specifications for their next cheque printing order. In order to ensure smooth transition to new design cheques, the CBB has given a 5 month period for them to make the required changes to their cheque designs. All cheques issued to customers after 1st January, 2010 must comply with these standards and specifications.
A two (2) year grace period has been granted to clear old design cheques to minimise inconvenience to banks as well as customers. Accordingly, old design cheques will continue to be accepted for clearing until 1st August, 2011.
If the CTS is implemented before the deadline, such old design cheques will be cleared until 1st August, 2011, at a transaction fee which will be equal to that of the transaction fee of the CTS. After the 2 year grace period, clearing of old design cheques may be done at a penalty charge.
The new cheque design at a glance:
All banks need to work closely with their customers to ensure that all cheques meet the new standards by 1st August, 2011. Customers should take measures to exchange their unused old design cheques for the new design cheques with their respective banks well in advance.
As the new Cheque design is simple and clear, cheque users will find the cheque easier to understand, read and fill out. However, the accuracy and speed of cheque processing, to a large extent, will depend on the quality of the required payment information entered in the respective areas of the cheques. Therefore, members of the public are advised to follow the instructions given by their banks for completion of cheques.
Sh. Salman Bin Isa Al-Khalifa further stated that the Kingdom of Bahrain will join other countries in the world who have introduced image friendly cheque standards and specifications. Banks and their customers are expected to benefit by this move, with faster and efficient cheque clearing and improved confidence in cheques, as a safer and more efficient payment means.
For further information on the new standards and specifications, members of the public may contact their banks and visit the CBB web site (www.cbb.gov.bh).
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Central Bank of Bahrain (CBB)
Contact: External Communications Unit
Tel: +973 17547357/17547360
E-mail: media@cbb.gov.bh
Website: www.cbb.gov.bh
© Press Release 2009
