New Law Gives Electronic Checks an Upgrade

YERUSHALAYIM -
A Palestinian man exchanges currency, in the in city of Rafah the southern Gaza Strip, the U.S. dollar and shekel in black markets in the Gaza Strip.The Israeli newspaper Maariv reported on Wednesday by the debate between myself and the Israeli defence minister Ehud Barak and Prime Minister Benjamin Netanyahu, saying that Barak approved the dispatch of 100 million shekels to the banks without the knowledge of the Gaza Strip, Prime Minister Netanyahu.on April 8, 2009.She pointed out that Netanyahu's request for details of the validation that came after the money was sent to Gaza, Netanyahu explained that he wanted to examine the question of the future to send money to the sector.The newspaper said that 100 million shekels were allocated for the payment of salaries to Palestinian Authority by the aim of preventing the deterioration of the economic situation, noting that part of the amount will be sent to the staff of (UNRWA) in the Gaza Strip.Photo By ABED ABED / Flash 90
(Abed Abed/Flash90)

Checks are to get a modern overhaul beginning this week, as a new electronic deposit law comes into effect. The law allows customers to take photos of checks with their smartphones and, via a banking app, deposit the checks into their account electronically. The conversion of a physical check into an electronic one renders the former useless, and once the money is deposited electronically, the physical check can be discarded or kept for the customer’s records.

Until now, most checks could be deposited or cashed only if they were physically presented at a bank or put into an overnight banking slot at a bank branch. Apps to allow electronic deposits of checks have actually been around for the past two years, but until now the law allowed customers only to deposit checks from accounts in the same bank. The new law will allow customers to electronically deposit any check.

In the event that a check is not accepted for deposit due to a lack of funds, the app will indicate that there is a problem – but that message will be sent in a matter of minutes, instead of the week or so that it currently takes banks to inform customers that a physically-deposited check has been rejected, thus saving everyone time and effort. The one limitation on the law will be that it will apply only to checks for the sum of NIS 10,000 or less.

Despite the old-fashioned image checks have, they are still the dominant form of payments in Israel. In 2015, 138 million checks worth NIS 1.02 trillion passed through the bank accounts of Israelis, while credit cards payments amounted to NIS 260 billion. Withdrawals from ATMs and bank tellers amounted to NIS 245 billion.