Banks will be allowed to honor checks for accounts with small excess overdrafts of up to NIS 1,000.
Acting Supervisor of Banks Avi Eckstein today published an amendment on the management of excess overdrafts in current bank accounts, allowing banks to honor checks for accounts with small excess overdrafts of up to NIS 1,000, provided that the excess does not last for a prolonged period.
The Bank of Israel said the amendment was intended to allow the full implementation of the excess overdraft regulations, while making it slightly easier for both the banks and customers by minimizing the chances of bounced checks caused by inadvertent errors and small excess overdrafts.
The Bank of Israel added that the relaxation would save bank customers from harm caused by returned checks, and save the banks the need to unilaterally set overdraft limits for customers who have not yet done so during the six-month extension granted for this purpose from July 1 until January 1, 2007.
Published by Globes [online], Israel business news - www.globes.co.il - on December 17, 2006
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