In a recent joint statement released by the South African Reserve Bank, Financial Sector Conduct Authority, Payments Association of South Africa and the Banking Association South Africa, all stakeholders are requested not to write/draw or accept cheques from 1 January 2021, as the issuing and the acceptance/collection of cheques will cease, effective from 31 December 2020.
According to the statement decision was taken due to the numerous challenges associated with the usage of cheques. These challenges include:
|●||a lengthy processing period|
|●||fraud perpetrated through the issuing of cheques|
|●||cheques as an expensive payment instrument|
|●||the restricted acceptance of cheques|
|●||limited education and protection for the consumer|
|●||ageing interbank cheque processing infrastructure|
|●||impact of the coronavirus pandemic (COVID-19) outbreak|
Click here to download the statement.