Cheques to phase out in June 2019
20 Nov 2018 17:00pm
WINDHOEK, 20 NOV (NAMPA) - The banking industry will phase out cheques as a payment instrument by June 2019, the chairperson of the Bankers Association of Namibia (BAN), Vetumbuavi Mungunda has announced.
In a media statement issued on Tuesday, Mungunda said banks would no longer be issuing or accepting any cheques, noting that individual banks may, however, have their own cut-off dates leading up to June 2019.
A large portion of cheque users are from specific industries that have cheque payments built into their business operations, many of which would benefit from moving away from cheque payments in terms of efficiency and risk, explained Mungunda.
He further urged banks and cheque users to consider the administration processes and the storage of physical paper required for cheques as well as the waiting period for a cheque to clear, in contrast to the electronic payments which can be done within minutes.
Moving away from cheques as a means of receiving or making payment altogether can go a long way to reduce costs and increase convenience for customers and businesses alike and I encourage customers to approach their individual banks for details, Mungunda said.