Manama, October 16 (BNA) The Central Bank of Bahrain seeks to maintain a leading position in promoting digitization and increasing innovative financial services. As part of the ongoing efforts towards digital transformation into reality in the national payment systems in the Kingdom of Bahrain, the Central Bank of Bahrain has taken an initiative to introduce electronic checks (e-Checks), complementing the traditional paper checks, a popular payment method in Bahrain. . Electronic checks, which will come into effect on October 19, 2021, are of particular importance as they will retain all of the basic functionality, legal validity and benefits of paper checks while providing additional benefits including a completely paperless payment experience for customers who rely on electronic checks for their day-to-day transactions or business.
The Central Bank of Bahrain directed the BENEFIT Company (BENEFIT) to implement the Bahrain Electronic Check System (BECS) by utilizing the latest technologies to provide electronic check services. Moreover, recently introduced laws such as the Transferable Electronic Records Act and the Electronic Communications and Transactions Act which came into force in 2018 gave the required legal basis for the project.
BECS, operated by The Benefit Corporation, is the world’s first fully electronic verification system to serve both individual and corporate clients.
BECS provides customers with mobile applications such as the BenefitPay App and e-Check App to request an electronic check book from their bank, write an electronic check, sign an electronic check, issue an electronic check and deposit an electronic check online without visiting the bank. Individuals can register online for this electronic check service through the BenefitPay app. Corporate customers can register at their bank for an e-Check application dedicated to benefiting from online electronic check services. The beauty of the eCheck application is that it allows corporate clients to easily allow multiple authorized signers to sign electronic checks online with no restrictions applied to each authorized signatory.
On this occasion, Ms. Hessa Abdullah Al-Sada, Executive Director of Banking Operations at the Central Bank of Bahrain, said: “This landmark achievement reflects the CBB’s continued commitment to providing the latest technology in the industry and encourages progress towards a cashless society that has access to all available electronic payment solutions.”
Al-Sada added: “The Central Bank of Bahrain extends its sincere thanks to the official authorities that facilitated the legal and regulatory requirements for this project and provided the appropriate conditions to start the service. These entities include the Ministry of Justice, Islamic Affairs and Endowments, the Telecommunications Regulatory Authority (TRA), the Information and e-Government Authority (IGA), in addition to BENEFIT Company, the operator of BECS.”
AOQ