Partial Cheque Payment

What is Partial Cheque Payment?

When a cheque is issued and the funds available for payment are less than the value of the cheque, the Bank will partially honour the cheque where it will pay up to the amount available on the account.

How will it work?

• If a cheque is returned due to insufficient funds, the bearer of the cheque can choose to accept partial payment. In this instance, the bearer must approach the drawee bank to proceed with partial payment of the cheque.
• The cheque must not be stale (not more than 180 days from the cheque date).
• The cheque must be valid in all other respect.
• Payment will be made to the beneficiary of the cheque only.
• The drawee bank will pay the bearer the remaining amount up to the available funds of the account.
• The drawee bank will then fix a special stamp to the front of the cheque, a stamp to the back of the cheque and return the cheque to the bearer alongside a Partial Payment Certificate.

Important things to note:

Fees & Charges

The bearer will not incur any fees for accepting partial cheque payment. However, the drawer will be charged a maximum processing fee of AED 5, and minimum balance breach fees may apply.

With the cheque the following documents are necessary

• Cheque and cheque return certificate (with reason of return as insufficient funds).
• Identification documents:

• For Individual– Passport/Emirates ID.

• For Non-Individual– Trade License copy or power of attorney copy along with Passport/Emirates ID of the authorized signatory or power of attorney as applicable.

Transaction Advice & Confirmation

• A certificate of partial payment will be issued to the beneficiary availing the partial payment service
• The original cheque will be returned to the beneficiary after endorsing the partial payment details on the cheque

Importantly, please note that in the instances outlined below, the Bank will be required to report the details of the account holder to the Central Bank.

• Where there are no sufficient/usable funds available for payment of the cheque value on its due date.
• Where the drawer issues the cheque and then withdraws funds for payment so that payment of the cheque value is not possible.

If you have any questions, please do not hesitate to contact our 24/7 customer service agents on 600544440 or visit one of our nearest branches for more details.