A Critique of the Innovations and Shortcomings of the Executive Directive on Electronic Checks A Critique of the Innovations and Shortcomings of the Executive Directive on Electronic Checks (Enacted in 2023) Regarding the Legal Regime Governing Fully Electronic Checks

Sadeghi, Mohsen; Seyyed Hashemi, Zahra Sadat; Khalili, Mahsa

doi:10.22034/ijts.2026.2077815.4214

A Critique of the Innovations and Shortcomings of the Executive Directive on Electronic Checks A Critique of the Innovations and Shortcomings of the Executive Directive on Electronic Checks (Enacted in 2023) Regarding the Legal Regime Governing Fully Electronic Checks

Document Type : Research Paper

Authors

Mohsen Sadeghi ¹

Zahra Sadat Seyyed Hashemi ²

Mahsa Khalili ²

¹ Associate-Professor, Faculty of Law and Political Sciences at University of Tehran

² Bachelor of Law, University of Tehran

10.22034/ijts.2026.2077815.4214

Abstract

Following the extensive use of paper checks under the Iranian Commercial Law (1932) and the Law on Issuance of Checks (1976), Iran introduced semi-electronic Sayadi checks through amendments adopted in 2018 and 2021. In continuation of this digitalization process, the Central Bank of Iran issued the Executive Directive on Electronic Checks in 2023 to establish fully electronic checks and eliminate paper-based procedures. Despite the directive’s importance, it has not yet received comprehensive legal and academic analysis, even though some banks, including Bank Saderat Iran, have already launched electronic checkbook systems such as Cheknov. This article adopts a qualitative, descriptive-analytical approach to examine whether electronic checks simplify legal relations arising from issuance and circulation or create additional legal complexities. It further analyzes the legal protections and guarantees governing electronic checks, particularly regarding electronic signatures, digital registration, electronic transfer methods, safeguards, and certificates of non-payment. The study also evaluates whether the directive can adequately address all legal dimensions of this modern commercial instrument. The article argues that, although the directive introduces important innovations, it also contains significant shortcomings that may create challenges for judicial practice and the rights of parties involved in electronic checks. The research therefore critically examines the directive and proposes practical legal solutions. The study concludes that electronic checks improve security, transparency, speed, and traceability in commercial transactions through centralized banking systems such as Sayad. However, challenges remain, including dependence on digital infrastructure, weaknesses in digital identity verification, limited digital literacy among users, and evidentiary difficulties in litigation.

Keywords

Electronic Cheque

Executive By-Law on Electronic Cheques

Commercial Law

Law Of Negotiable Instruments

Subjects

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