Bank Windhoek to reduce cheque limits to N$100 000

January 15, 2016, 12:58pm

Chris Matthee, Executive Officer: Retail Banking Services  

The Villager Newspaper

Bank Windhoek will reduce its cheque limits per transaction from the existing N$500 000 to N$100 000 starting from Saturday, 16 January 2016, as a first step in phasing out cheque payments over the next two years.

The Payment Clearing House (PCH), under the Payment Association of Namibia (PAN), which is recognised and licensed with Bank of Namibia, has set out to reduce cheque limits per transaction across the industry.

The idea behind the decision is to encourage customers to use safer and more secure payment options such as electronic payment methods, to reduce the possibility of cheque fraud, cheques are being phased out globally, retail stores are adopting more credit and debit card facilities, and there are more cost effective options available.

“The directive means that business and individual customers may not issue any cheque for an amount exceeding N$100 000 per transaction. Single cheque deposits exceeding the prescribed amount will no longer be accepted, or processed, by any Namibian banking institution,” said Chris Matthee, Executive Officer: Retail Banking Services.

“Customers are also not allowed to “split” any amount to be paid in excess of N$100 000 between more than one cheque per single transaction. The second phase of the directive will be thoroughly communicated to all customers to ensure that all customers are ready and have alternate payment mechanisms in place with the ultimate phasing out of all cheques by 31 December 2017,” Matthee said.

Bank Windhoek encourages customers to convert to safer payment methods. 

“In an effort to encourage customers to make use of electronic banking services, Bank Windhoek has decreased monthly Internet Banking subscription fees by almost 40% for individual and business customers, with effect from 1 July 2015,” Matthee concluded.