The Central Bank of Bahrain will soon let people make payments and deposits through electronic cheques or e-cheques, according to an official statement from the bank.
The e-cheques will come into effect on October 19, said the official sources.
E-cheques are expected to complement traditional paper cheques, which are a popular payment instrument in Bahrain.
This move is said to be a part of the ongoing efforts of the CBB towards digital transformation in the National Payment Systems in Bahrain.
The e-cheques will retain all the basic functions, legal validity, and benefits of paper cheques while providing an entirely paperless payment experience for customers, said the sources.
The CBB is said to have directed the BENEFIT Company to implement the Bahrain Electronic Cheque System or BECS leveraging the latest technology.
Recent legislation such as the Electronic Transferable Records Law and the Electronic Communications and Transactions Law, reportedly gave the required legal basis for the project.
BECS, to be operated by BENEFIT, is the first fully pledged e-cheque system in the world that caters to individual, as well as corporate bank customers, said the sources.
It is expected to provide customers mobile apps such as BenefitPay and the e-Cheque App to request an e-cheque book from banks.
They will also let people write sign it, issue, and deposit e-cheque online without visiting the bank.
Individuals will be register online for this e-cheque service through the BenefitPay App, said the sources.
Corporate customers can register at their banks to get the dedicated e-Cheque App.
The app will apparently allow corporate customers to let multiple authorized signatories sign e-cheques online.
