New Amendment to the Commercial Transactions Law in the UAE regarding Partial Payment of Cheques – effective 02.01.2022

Further to the new amendments to the Commercial Transactions Law in the United Arab Emirates, the Central Bank of the UAE has recently announced that partial payment of cheques shall come into effect on Sunday, 2^nd January 2022.

As of this date, the new law states that when the amount available for payment is less than the value of the cheque, the drawee bank is obliged to partially pay the value of the cheque up to the available amount, unless rejected by the cheque bearer.

The related mechanism is currently under discussion and is expected to be formalised and circulated soon.