Under law, in case of lack of funds to cover a check, the check will be “bounced” by the bank and upon the bouncing of ten checks due to lack of funds within a twelve months period, the bank account will be limited and its owner will be declared a limited customer. In this situation, various restrictions are imposed such as inability to withdraw checks, inability to open a new bank account and more. Due to the crisis created by the Corona Virus, emergency regulations were promulgated, which, together with the declaration of the Supervisor of Banks, set a delay in the restrictions on accounts and their owners from 04.03.2020 for 110 days or until the end of the emergency period, whichever is earlier.
Published in Afik News 305 25.03.2020
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