What are the procedures for partial payment in UAE? Read more about this



Starting from 2nd January 2022, the Central Bank of UAE has mandated the banks to facilitate partial payment of cheques.

Until 2021, a cheque was paid only if the issuer had sufficient balance in their account to honor the full value of the cheque. If not, the bearer was not paid anything.

What are these new rules and regulations?

As per the new rule, the banks are now facilitated to make a partial payment of cheques. That is if the issuer’s account does not have sufficient funds the bearer can opt to obtain a partial payment to the extent of the available funds in the issuer’s account.

This option is only available to the cheques that are returned due to insufficient funds. Upon partial payment, the cheque will be returned to the bearer until the full amount has been paid.

However, it is up to the beneficiary whether to accept or reject the partial payment. The cheque bearer is in no way obliged to accept the partial payment even though it is mandatory for the banks to do so.

What are the procedures for partial payment?

The minimum amount eligible for the partial payment of a cheque is 5% of the cheque value. While accepting a partial payment, the bearer can request the bank to make a mark on the back of the cheque, indicating partial payment. The bank should also issue a certificate along with this to confirm the partial payment.

When the amount is collected through the cheque bearer’s bank, the latter will provide a certificate confirming partial payment to the cheque bearer. A copy of the partially-paycheque and the certificate issued are kept by the bank. As per the law, if the drawer refuses to pay or has no capacity, the cheque bearer can go ahead with a civil case against the drawer. To avail of the service of partial payment, it is important that the cheque should not be older than 180 days from the issue date.

No charges will be imposed on the receiver but the issuer will be charged AED 5 for each partial payment made.

What are the steps to be followed:

  • The cheque bearer may visit the bank to exchange the cheque for cash.
  • If the cheque is returned due to insufficient funds, the cheque bearer can avail of the partial payment at the bank branch from which it was issued.
  • In order to get the partial payment, the cheque bearer must carry the required documents to the bank, which are:
  1. Original cheque
  2. The returned cheque memo indicated insufficient funds
  3. Relevant identification documents. Individuals should carry their original Emirates ID and if the cheque bearer is a corporate, they should produce their original Emirates ID and trade license copy.

The same procedure is to be followed for availing of the remaining partial payments. But only one payment can be made a single day. The account holder will receive a message on their mobile every time a partial payment is made.

Frequently Asked Questions:
  1. Who can avail of the service of partial payment?

Any beneficiary of the Emirates NBD cheque is eligible for the partial payments of cheques.

  1. How will the beneficiary be paid?

The beneficiary will be paid in any of the following methods:

  1. In cash (or)
  2. As account credit (or)
  3. Manager’s cheque (Pay order)
  4. Is it possible to withdraw the full remaining balance in the issuer’s account?

Yes, it is possible to withdraw the full remaining balance from the issuer’s account.

  1. Will the partial payment certificate contain the drawer’s contact details?

Yes, the certificate will contain the drawer’s address and telephone.

  1. How can the beneficiary know the details of the remaining amount that is yet to be paid to them?

The beneficiary will receive the original cheque and partial payment certificate from the bank. The bearer or beneficiary will be able to reconcile, track and re-present the cheque based on the partial payment certificate.

  1. Are the obligations of the issuer different if the bearer opts for partial payment?

No, the obligations of the issuer remain the same as before. The issuer is liable to pay the full amount of the cheque, which will occur in parts in case of partial payment.

  1. What can the beneficiary do if the cheque becomes invalid before the payment is done?

If the cheque expires before the full payment is made, the beneficiary should get a new cheque from the issuer.

  1. Will the bank contact the drawer to proceed with partial payment?

No, the bank will not be contacting the drawer.

  1. Will the bank accept crossed cheques for partial payment?

No, a crossed cheque can not be used to avail partial payment. If the cheque is crossed, it should be canceled by the issuer before it is availed for partial payment by the beneficiary.

  1. Is the service of partial payment available at all banks in the UAE?

Yes, all the banks registered under the Central Bank of UAE will be following the new amendment.