In previous years, issuing a ‘bounced’ cheque could land you jail time. According to a decision by Dubai Courts, this will no longer be the case. The new ruling means that rather than serving a term in jail, people are required to pay a fine.
These developments are in an attempt to help UAE residents facing debt overcome their issues.
This will come into effect in December and will be subject to fines as follows:
- Those responsible for bounced cheques of up to Dhs 50,000 will be fined Dhs 2,000.
- Those who bounce cheques of between Dhs 50,000 and Dhs 100,000 will be fined Dhs 5,000.
- Those responsible for a bounced cheque between Dhs 100,000 and Dhs 200,000 will be fined Dhs 10,000.