In the current modern era where the invention of ATM cards, debit cards, and credit cards has changed the concept of paper money. Though payments by Cheques, are still in demand. Organizations still use Cheques for many financial purposes like securities and other financial matters. Even in United Arab Emirates Post Dated Cheques (PDC) are still used in a huge amount. Let’s have a look at how it works and whether it is still a useful tool.

 

In the beginning, the rules defined for bounced Cheques for the first time can be found in the Panel Code of UAE 1987. This law states that issuance of Cheques by any person more than the current amount in the account is a criminal offense.  The state of UAE has declared punishment for such acts and should be dealing with an iron hand. The person who issues bounced Cheques has a punishment of detention from one month to 3 years or by a fine up to AED 300,000. That is why bounced Cheques are still used as a security tool in the United Arab Emirates.

 

In December 2017, a new criminal order law enforced in Dubai which gives additional charges to public prosecutors in Dubai. The purpose of this law is to regulate rules and laws in bounced Cheques cases in which the amount is minor. After this law, the public prosecutors in Dubai are permitted to reduce the punishment of bouncing Cheques up to AED 200,000. The punishment of such cases is AED 2,000 to AED 10,000 and no jail time.

In short, bouncing Cheques is still a criminal offense and it depends on the worth of the Cheques. However, it depends upon the amount of Cheques and the punishment will be as according to the case. Punishment may be only a fine or fine with the jail.