Does the bank face penalties for not making partial payment on a cheque in the UAE?

Under the UAE cheque reform that took effect on 2 January 2022 (Federal Decree-Law No. 14 of 2020), banks have a clear obligation tied to partial payment: where an account holds only part of the cheque amount, the bank must pay out the available balance and document the shortfall, rather than rejecting the cheque entirely. This duty was introduced precisely so beneficiaries recover as much as possible. The framework also places responsibilities on banks in how they handle cheques and report on accounts, and failures in those duties can carry consequences set by the law and the regulator. If your cheque was refused in full even though funds were partly available, that may not match the bank's obligations, and you can raise the issue with the bank and, if needed, the relevant authority. Because the precise duties and any sanctions are fixed by statute and regulation, confirm the current position rather than assume. For help challenging an improper rejection or recovering your money, you can compare verified UAE legal professionals on LEXAI.