A joint media statement by the South African Reserve Bank, Financial Sector Conduct Authority, Payments Association of South Africa and the Banking Association South Africa was recently published stating that the issuing and the acceptance/collection of cheques will cease with effect from 31 December 2020.
This 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
- declining usage
- limited education and protection for the consumer
- ageing interbank cheque processing infrastructure
- impact of the coronavirus pandemic (COVID-19) outbreak
South African banks will not accept any cheques for deposit or encashment after 31 December 2020. Affected stakeholders are therefore requested not to write/draw or accept cheques after 31 December 2020.
To read the media statement, click here.