Revised CATS Procedure Dec.20161

COMMERCIAL BANK OF ETHIOPIA December 1, 2016
the dishonored cheque is fully paid to the payee or equivalent amount is
blocked pending the payment to the payee
2. record the incident for the second time in the Dishonored Cheque
register, restricted all debit (outgoing) transactions against this account
until all the cheques which have been dishonored & registered
hereinabove are fully paid or equivalent amount is blocked pending the
payment to the payee(s); and levy a fine of 3% of the amount appearing
on the cheque dishonored for the second time but not exceeding Birr
25,000 (twenty five thousand Birr)
2.1 If there is no sufficient fund in the account even to cover the charges,
nonetheless, leaves Birr.1.00 in the account balance, debits the
customer’s account with the remaining amount and does close followup
on the customer’s account to recover the unpaid charges.
3. Record the incident for the third time in the dishonored Cheque register,
close the account, levy a fine of 5% of the amount appearing on the
cheque dishonored for the third time but not exceeding Birr 50,000 (fifty
thousand Birr) and make every effort possible to collect all unused
cheque leaves & pads from the drawer and report same to CATS CPC to
close such persons demand deposit account in all CBE branches and
inform NBE.
4. Notwithstanding provisions under i(1) and i(2) debit charges like legal,
insurance, advertisement, such other non-cash transactions, accrue
interest against overdraft accounts against a blocked account; and the
bank may unblock the account and make the fund available to the drawer
;
i. If the drawer presents the dishonored cheques to the bank or the
payee(s) may appear in person to the bank and confirm in writing
that the dishonored cheques have been fully settled in the form
prescribed (refer form CBECATS202) ; or
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