In order to help the public carry out remote banking activities in these times, the Bank of Israel has decided to increase the deposit amount for an individual check via the mobile device banking application to NIS 50,000, effective immediately.
The coronavirus crisis in Israel and abroad and the steps taken by the government have impacted the ability of many households and businesses to reach bank branches in order to deposit checks.
In 2017, the Bank of Israel promoted, together with the banking system, the reform in the Paper-based (Checks) Clearing House, which makes it possible to deposit checks by photographing the check with a mobile device. This option has been available to customers for 3 years and was limited to an amount of NIS 20,000 per check.
An examination that was carried out in 2019 showed that approximately 3.8 million checks were deposited physically at bank branches with values that ranged from NIS 20,000 to NIS 50,000. The current action will make it possible to digitally deposit those checks via mobile device.
The current action is made possible in view of the implementation of the Electronic Check Clearing Law, which allows the provision of banking services that are inexpensive, innovative, convenient and more rapid for customers.
For additional details and explanations of the Law, the rules and the check output, see the section on the Bank of Israel website at:
http://www.boi.org.il/en/PaymentSystem/Pages/Cheque-truncation.aspx
Among the remarks by the Bank of Israel’s Director General, Mr. Hezi Kalo, at the special press conference held on March 24, 2020:
“The payment systems in Israel are working in a secure and stable manner and are providing all the services. The public continues to use, as during routine times, digital means of payment and digital services (such as bank transfers, payment applications, and check deposits via mobile devices), the use of which during such a time is all the more important.
In the months before the crisis, the Bank of Israel took steps to promote the infrastructure for making remote payments and contactless payments. These steps will continue and they help in making payments easily and securely during these times as well.”