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Discontinuation of cheques

  • South Africa
  • Banking and finance - Articles

07-12-2020

The usage of cheques has rapidly declined over the last decade, with very few consumers, public and business entities presently making use of this payment method. The decline is due to alternative and more effective payment methods such as electronic and card payments.

On 27 November 2020, it was announced that the South African Reserve Bank (SARB), Financial Sector Conduct Authority (FSCA), Payments Association of South Africa (PASA) and the Banking Association of South Africa (BASA) that the issuing of and acceptance/collection of cheques will cease, as of 31 December 2020. As a result, South African banks will no longer be accepting any cheques for deposit or encashment.

Businesses and members of the public are therefore requested not to draw or accept cheques after 31 December 2020 and are encouraged to approach their banks to be educated on alternative electronic payment methods.

Co-authored by: Kristy Bassingthwaighte, Candidate Attorney.

 

 

Helen Westman, Partner

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