Banks to allow NIS 1,000 credit excess

Banks will be permitted to honor checks and account debits, even if the current account is being exceeded moderately, according to a new adjustment to the credit regulation law by the Supervisor of Banks.

Banks will be permitted to honor checks and account debits, even if the current account is being exceeded moderately, according to a new adjustment to the credit regulation law by the Supervisor of Banks. The leeway of credit excess, limited to NIS 1,000, is being introduced in order to help customers and banks adjust to and implement the new credit regulations that went into effect on July 1 this year. In addition, the banks received a six-month extension to the deadline by which all credit frameworks of current accounts need to be arranged - that is from the original January 1, 2007 deadline to July 1 2007.