The bank has said the decision is all about protecting customers from fraud…
Heads up: RAK Bank has said that they will no longer accept cash cheques at all from September 1 onwards.
Why won’t the major bank clear cash cheques? They’ve said it’s all about protecting customers from “an increasing trend of fraud”.
Cash cheques are a common payment method in the UAE – they’re cheques that aren’t addressed to a particular person, instead they just say ‘cash’ on them and anyone can cash them.
But, as it’s effectively like carrying cash around, if you lose it, someone else may be able to deposit it (unless you’ve managed to block payment on the cheque before they’ve tried).
RAK Bank has advised its customers to use digital banking services – which they say are more secure – to make cash payments.
All cash cheques presented to RAK Bank after September 1 will be returned, with the note “payee name differs”.
Cash cheques are often used when people don’t know who specifically to make a payment to, or for payments to people who don’t have bank accounts. (But, in those instances you could also just give the person cash.)
Other UAE banks still accept cash cheques, although they may soon follow RAK Bank’s suit.