Israel Central Bank Launches Mobile Check Deposit for Post-Dated Checks

The Bank of Israel is introducing a new service allowing customers to deposit post-dated checks remotely via mobile banking apps, eliminating the need for branch visits and reducing transaction costs. The rollout began on September 2nd and is expected to be fully available to customers of most Israeli banks by October.

Previously, mobile apps primarily supported checks for immediate payment. This update extends the digital mechanism to checks with future payment dates, operating 24/7. Initially, the service will allow deposits of post-dated checks up to 100,000 shekels with a maturity date within 13 months. The checks must be endorsed to the recipient and marked as non-transferable.

After a check is deposited via the app, its image will be stored digitally, and the customer will retain the physical check. On the specified payment date, the bank will automatically present the check for payment. Information from the magnetic stripe and payment date will be shared between banks to prevent duplicate deposits.

The Bank of Israel anticipates this innovation will save customers time and money, while also easing the burden on the banking infrastructure. Despite the rise of digital payments, checks remain a significant payment method in Israel, with an estimated annual volume of 640 billion shekels in 2025.

Ofer Golan, Director of the Payment and Settlement Systems Department at the Bank of Israel, stated that checks are still a crucial instrument and the new system merges traditional payment methods with modern digital technology. Daniel Hachiasvili, Head of Banking Supervision, highlighted the service's particular benefit for households and small businesses that frequently use post-dated checks. The Bank of Israel views this as part of a broader digitalization effort, aiming to move more traditional banking operations online while maintaining security standards.