The South African Reserve Financial institution (SARB), Monetary Sector Conduct Authority (FSCA), Funds Affiliation of South Africa (PASA) and the Banking Affiliation South Africa (BASA) have collectively agreed that that the issuing and the acceptance/assortment of cheques will stop from 31 December 2020.
The Reserve Financial institution mentioned this resolution was taken as a result of quite a few challenges related to the utilization of cheques.
It mentioned that these challenges embody:
- A prolonged processing interval;
- Fraud perpetrated by the issuing of cheques;
- Cheques as an costly cost instrument;
- The restricted acceptance of cheques;
- Declining utilization;
- Restricted schooling and safety for the patron;
- Ageing interbank cheque processing infrastructure;
- Influence of the coronavirus pandemic (Covid-19) outbreak.
“On this regard, South African banks won’t settle for any cheques for deposit or encashment after 31 December 2020,” the Reserve Financial institution mentioned.
“Banks are anticipated to extensively talk with their shoppers main as much as and past the discontinuation of cheques. Moreover, to coach their shoppers on different digital cost strategies which may be used.”
The SARB mentioned that affected stakeholders are requested to not write/draw or settle for cheques after 31 December 2020.
“They’re inspired to strategy their banks to be provided different digital cost strategies or to direct any queries they might have associated to the method of termination of the utilization of cheques,” it mentioned.
You may learn extra in regards to the phasing out of cheques from the nationwide cost system within the SARB’s session paper right here.
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