THE Central Bank could reconsider certain provisions concerning penalties on those who bounce cheques while the date for implementing new rules regarding post-dated cheques could be pushed even further.
New rules on bounced cheques were scheduled to come into force on January 2, 2003, but implementation was pushed back a month following a request by the House Finance Committee.
Provisions concerning post-dated cheques were pushed back even further to July 1, 2003.
Central Bank Governor Christodoulos Christodoulou said yesterday that a final decision on the matter would be taken on January 20.
Speaking after a meeting with members of the House Finance and Legal Affairs Committees, Christodoulou said there could be some changes in the rules but the philosophy and structure of the law would remain unaltered.
He added that the February 1 deadline was “final”, while a further extension of three months would be considered for post-dated cheques.
“I will look into the possibility of an extension; they have suggested October 1 instead of July 1 but it could be Septmber 1 instead of October,” Christodoulou said.
The introduction of the new rules effectively puts an end to the practice of issuing post-dated cheques, as banks will now be able cash them upon presentation, irrespective of the date.
The planned blacklist is designed to reinforce the credibility of cheques by barring cheque bouncers from issuing any further cheques.
Before anyone can get blacklisted, their cheque must remain unpaid for at least seven days after it is first presented for payment at any bank or co-op.
The drawer’s name is then placed on a preliminary list, giving another chance for settlement.
If the cheque is paid at this stage, the issuer’s name will remain on the preliminary list, though it will not be placed on the blacklist.
The moment anyone gets blacklisted, banks will freeze all their current accounts and inform them to stop writing cheques and hand in their chequebook within 10 days.
Anyone on the list cannot open a new current account until their name is removed after a mandatory period of five years.
Yesterday, Christodoulou said he had heard suggestions concerning the severity of the penalties as well as the seven-days grace period given to a drawer to settle the cheque.
He said the period could be increased to 15 or 20 days, but added all decisions would be made on January 20, and any changes published before the end of the month.
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