Bank of Israel Launches Digital Future Check Deposits
The Bank of Israel announced on September 2nd that a new service allowing the digital deposit of future-dated checks through bank applications is now available. This service, which will be gradually rolled out over the coming weeks and is expected to be fully operational by October, is part of the central bank's initiative to promote innovation and efficiency in payment systems.
Previously, mobile banking apps only supported the deposit of checks for immediate payment. The new system will enable users to deposit post-dated checks, including those marked "for account payee only" or with a "cross" (stamped for deposit only to a specific account), via their bank's app. Initially, deposits will be capped at 100,000 shekels and can be made for checks dated up to 13 months in the future.
The service operates 24/7, eliminating the need for physical branch visits. After a check is photographed and deposited digitally, the image will be stored by the bank, and the check will be automatically presented for payment on its due date. Importantly, customers will retain physical possession of the check after depositing it digitally, unlike traditional physical deposits.
Details of the magnetic stripe and the payment date will be transmitted to banks to prevent duplicate processing. The Bank of Israel estimates that checks represent a significant portion of economic activity, with a volume of approximately 640 billion shekels in 2025, accounting for about 5% of all payment transactions in the economy. Streamlining the check handling process, particularly for future-dated checks, is expected to yield substantial savings in time, costs, and resources for both the public and the banking system.
Ofer Golan, Head of the Payments and Settlements Department at the Bank of Israel, stated that checks remain a vital payment method. He highlighted that the new service integrates traditional payment infrastructure with advanced digital capabilities, allowing future-dated checks to be deposited upon receipt without further action on the due date. He added that this initiative will improve processes, enhance public service, and boost the efficiency of Israel's payment systems, attributing its success to collaboration between the check clearing committee, the Bank of Israel, and the banking sector.
Daniel Hachiyashwili, the Supervisor of Banks, echoed these sentiments, emphasizing the banking supervision department's commitment to fostering innovation. He noted that the ability to easily deposit future-dated checks via banking apps addresses a need for many customers, including households and small businesses, improving convenience and service. The department will continue to promote digital, innovative, and secure banking practices for traditional products to ensure a convenient, accessible, and advanced experience for all bank customers.
