With the start of 2020, several financial thresholds and requirements have been adjusted, including the amount for which a drawee bank is liable on bearer checks. The Central Bank of the Republic of Turkey published a communiqué in the Official Gazette that increases the bank’s liability amount for checks presented to it.
According to the communiqué issued by the Central Bank regarding the printing format of checkbooks and the amounts banks must pay to the bearer, the maximum liability of the drawee bank has been raised to 2,225 TL. This change was announced in the Official Gazette dated 17 January 2020.
Official Gazette Text of the 2020 Amendment
The amendment published in the Official Gazette clarifies the drawee bank’s payment obligations for bearer checks presented within the legal presentation period. If there is no available cover for a check, and the check amount is 2,225 TL or more, the drawee bank is required to pay 2,225 TL of that check. If the check amount is less than 2,225 TL and there is no cover, the bank must pay the full amount of the check.
When a check has partial cover, the drawee bank must, provided the check amount does not exceed 2,225 TL, make up the partial cover up to 2,225 TL. If the check amount exceeds 2,225 TL and there is partial cover, the bank must add 2,225 TL to the partial cover without exceeding the total check amount.
Under a previous or transitional provision, the drawee bank’s obligation for each presented check without cover was 1,345 TL. The recent amendment revises these figures: in the absence of cover, the drawee bank’s payment obligation per check has been adjusted to the new amounts described above. When there is partial cover, the bank is responsible for completing the amount per check up to the stated threshold. The communiqué will enter into force on 30 January 2020.
These changes affect how banks manage and settle bearer checks presented within the legal time frame, and they update the minimum amounts banks must consider when a check lacks sufficient funds or only has partial cover. Account holders and businesses issuing or receiving checks should note these revised thresholds when evaluating potential liabilities and planning cash flow.