A government-drafted set of changes to Bahrain's Commercial Law would require banks to release whatever funds are available in a current account when a cheque is presented, even if the full amount cannot be covered. The bill is scheduled
TDT | Manama
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A government-drafted set of changes to Bahrain’s Commercial Law would require banks to release whatever funds are available in a current account when a cheque is presented, even if the full amount cannot be covered.
The bill is scheduled for debate in the Shura Council on Sunday.
At present, if there is not enough money to settle the full value of a cheque, the bank refuses payment altogether. That can lead to police complaints and court action.
The proposed amendment would allow the available amount to be paid straight away.
Unpaid balance
The unpaid balance could then be pursued by the cheque holder through the courts or other channels already set out in law.
This proposal has its roots in a proposal first brought by Shura members in 2022.
They raised concerns that there was no rule allowing banks to part-pay cheques or secure the remaining amount.
That draft has since been revised and broadened by the government and is now being brought back for formal discussion.
