The Central Bank of Bahrain (CBB) is set to introduce the electronic cheque system from October 19, complementing the traditional paper cheques - a popular payment instrument in the kingdom.
The Bahrain Electronic Cheque System (BECS) is the first fully pledged e-Cheque system in the world that caters to individual, as well as corporate bank customers, said a statement from CBB.
The launch of Bahrain Electronic Cheque System (BECS) comes as part of CBB's ongoing efforts towards digital transformation; a reality in the National Payment Systems in the kingdom.
It will be operated by Benefit Company, a key fintech and electronic financial transactions services company in the kingdom.
The e-Cheques have a special significance as they will retain all basic functions, legal validity and benefits of paper cheques while providing additional benefits including entirely paperless payment experience for customers who rely on e-Cheques to conduct their day-to-day transactions or business.
Furthermore, the recently introduced laws such as Electronic Transferable Records Law and the Electronic Communications and Transactions Law that came into force in 2018, provided the required legal basis for the project.
On the new e-Cheque, Hesa Abdulla Al Sada, the Executive Director of Banking Operations at CBB, said: "This milestone achievement reflects the ongoing commitment of the CBB in providing the latest technologies in the industry and encourages the progression towards a cashless society that has access to all electronic payment solutions available."
BECS provides customers mobile Apps such as BenefitPay and e-Cheque App to request an e-cheque book from their banks, write an e-cheque, sign an e-cheque, issue an e-cheque and deposit an e-cheque online without visiting the bank.
Individuals can register online for this e-cheque service through the BenefitPay App, stated Al Sada.
Corporate customers can register at its bank to get the dedicated e-Cheque App to avail online e-Cheque services. The beauty of the e-cheque App is that it allows a corporate customer to easily let its multiple authorised signatories sign e-cheques online while applying any limits on each authorised signatory.
Al Sada said: "The CBB extends its sincere acknowledgements to the official entities that facilitated the legal and regulatory requirements for this project and provided the suitable conditions to launch the service."
"These entities include Ministry of Justice, Islamic Affairs and Waqf, Telecommunications Regulatory Authority (TRA), the Information and e-Government Authority (IGA), in addition to the Benefit Company," she added.-TradeArabia News Service