Israel's Central Bank Allows Mobile Deposit of Post-Dated Checks

The Bank of Israel announced that as of last Wednesday, it is now possible to deposit post-dated checks through banks' mobile applications. The new digital deposit service for post-dated checks will be gradually rolled out over the coming weeks, with full implementation expected by October. This initiative aims to foster innovation, efficiency, and digital transformation within the payment systems, expanding upon the existing mobile deposit service which was previously limited to checks with immediate due dates.

The service will be available at most banks and will allow the deposit of checks marked with an "X" or the phrase "for payee only." Initially, the service will permit the deposit of post-dated checks up to 100,000 shekels, with due dates up to 13 months in the future. Customers can utilize this 24/7 service via their bank's mobile app without needing to visit a branch. A scanned image of the check will be stored by the bank, and it will be automatically presented for payment on its due date. Unlike the physical check deposit service, customers will retain the original check. Details of the deposited check and its due date will be sent to banks via magnetic stripe data to prevent duplication.

This new capability is expected to reduce transaction costs for customers and improve operational efficiency, offering significant savings and benefits to banking service users. The Bank of Israel highlighted that check transactions in 2025 are projected to reach approximately 640 billion shekels, representing about 5% of the total volume of basic payment transactions in the economy. Streamlining the processing of checks, particularly post-dated ones, is anticipated to yield substantial savings in time, cost, and resources for both the public and the banking system.

Ofer Golan, Director of the Payments and Settlements Department at the Bank of Israel, stated that checks remain a fundamental payment method in Israel, with annual values in the hundreds of billions of shekels. He noted that the new service integrates stable payment infrastructure with advanced digital capabilities, enabling immediate deposit of post-dated checks without further action on the due date. He credited the launch to the collaboration between the Check Clearing Committee, the Bank of Israel, and the banking sector.

Daniel Hachiyashvilli, the Supervisor of Banks, added that the Banking Supervision Department is committed to encouraging innovation. He believes the mobile deposit of post-dated checks will benefit a wide range of customers, including individuals and small businesses, by improving convenience and offering an additional banking product. The department will continue to promote secure, innovative, and convenient digital banking services.