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FINANCIAL NEWS
UAE CB to introduce new direct debit system
10 Apr 2013
(MENAFN) The UAE central bank announced that it will bring in a new direct debit system for commercial banks on June 15 to facilitate operations carried out by foreign customers in the country, reported Arabian Business.
The new system comes as post-dated cheques are normally used as guarantees by businesses and individuals in the UAE.
However, for foreigners, bouncing the cheques is a criminal offence that causes some foreigners to be imprisoned.
With the introduction of the new system, customers will be allowed to make regular, automatic payments from their bank accounts towards mortgage loans, credit card payments and personal loan installments, according to the central bank.
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