The Central Bank of UAE in an effort to bring international best practices to the UAE economy, has announced a New Transaction Law – ‘Decriminalisation of Bounced Cheques’.
This updated law has been made effective from January 2, 2022.
This updated law on bounced cheques will bring up UAE’s Business environment up to international standards. This will make the UAE a much more attractive place to invest in.
The bottom line is that the changing regulation surrounding bounced cheques will help the SME’s with their cash flow management.
Some of the major changes that are being introduced are :
With these updated and amended provisions, the UAE Government aims to improve business standards in the UAE. With such efforts to follow international best practices in the UAE economy, it would surely become an attractive place to invest in and conduct business. This means, there would ultimately increase in UAE’s ranking in the “Global Competitive Index”.
Further, it would help in reducing the workload of the UAE courts by reducing bounced cheque related cases.