Partial Payment Cheque FAQ – Al Masraf

Partial Payment Cheque FAQ

Answers to the most frequently asked questions

Partial payment means payment of part of the value of the cheque if its full value is not available in the drawer’s account, and accordingly the drawer, the endorsers and the guarantors (if any) shall be partially cleared. For payment of a cheques value, the Law in the UAE does not require that the funds available with the drawee bank are equal to the value of the cheque.

Yes, as per Article (617) of the Law, the bank should, where the fund for payment is less than the value of the cheque, partially pay the value of the cheque up to the available fund, unless the bearer rejects partial payment. In this case and upon each partial payment, the bank shall initial the back of the cheque confirming the partial payment and give back the original cheque to the bearer along with a certificate to that effect.

In case of collection through the cheque holder/ beneficiary’s bank, the latter will issue the partial payment certificate to the cheque holder/beneficiary. The bank may keep a copy of the partially paid cheque and a copy of the partial payment certificate issued by it.

The bearer of the cheque shall have the right to demand the payment of the remaining amount against the original of the initial cheque, as per the Executive Regulations of the Civil Transactions Law, being considered an execution writ, according to the provision of Article (635 bis) of the Law.

  1. Where no sufficient and usable funds for payment of the value of cheque is available at its due date; Cheque has return it as insufficient funds.
  2. Account holder has minimum of 5% from presented cheque amount

5% of the presented cheque amount

Until all cheque amount is payed within 180 calendar days from the cheque value date.

  1. When the bearer/holder submit the cheque for encashment, the teller will offer the bearer/holder a partial payment of cheque if its full value is not available in drawer’s account.
  2. Cheque bearer/holder must visit the Issuing Bank and provide Original Cheque along with the Cheque Return Advice stating the rejection reason as NSF (Non-Sufficient Funds)
  3. Cheque holder should be authorized for cheque’s payment and shall present his/her original Emirates ID  valid Passport if EID is not available
  4. Cheque holder  must  sign on the beneficiary form to agree for partial payment
  5. If account holder has more than 5% of cheque value, transaction will be processed.
  6. Cheque will be stamped front and back to show that the Partial Payment has been performed on the cheque
  7. Partial payment Certificate along with the original cheque shall be handed over to the Beneficiary.

NO ,The drawee bank shall not charge the bearer/holder any fee for processing partial payment of their cheques, However, a fee not exceeding AED 5 can be charged by the drawee bank on the drawer for each partial payment processed successfully, in addition to the minimum balance breach fee, if any and the Manager Cheque fees

Yes, Teller will inform the cheque’s bearer/holder about the amount available.  If cheque’s bearer/holder agrees for the partial payment, he/she will sign the consent letter to continue the necessary process.

The documents required are :

  • Returned Cheque Advice stating the rejection reason as “Non-sufficient Funds”.
  • Original Cheque
  • Valid original Emirates ID or Valid original Passport
  • For Non individual entities to the above the required documents are:
    • Representative Emirates ID
    • Supportive evidence: Authority letter provided by the company or POA or commercial license.

Same day provided all the documentation and the approvals are in place

If after the partial payment of cheque, the law allows the beneficiary of the cheque to take the case to the court any time he/she sees it necessary.

There is no pre-defined number of attempts. The beneficiary reserves the right to take the case to the court any time he/she sees it necessary.

The cheque will not be eligible for partial payment; however the beneficiary reserves the right to take the case to the court if he sees it necessary.

Dedicated Branches are available for the Cheque Partial Payment :

  • Sheikh Zayed Road Branch –Dubai
  • Main Branch -Abu Dhabi

Once Cheque is paid in full, the bank should retain the original cheque.

PS of Chq stands for Partial Settlement of Cheque

For more clarification kindly call 600 52 9999