FNB says that it’ll discontinue the issuing of cheques as of 1 January 2021.
Clients who nonetheless use cheques have been given a six months’ discover interval to adapt to different types of funds, the financial institution mentioned in an announcement on Tuesday (7 July).
The financial institution mentioned that the choice follows the declining use of cheques domestically and globally, coupled with the current announcement made by the Funds Affiliation of South Africa (PASA) to cut back the utmost worth of cheque limits from R500,000 to R50,000 in Could this 12 months.
Kenneth Matlhole, FNB Enterprise Product Head says, as of 1 January 2021, FNB shoppers will not have the ability to difficulty cheques. “Nevertheless, we’ll nonetheless honour different banks cheque funds till additional discover,” he mentioned.
Matlhole mentioned that through the years, FNB has inspired shoppers emigrate to safer, sooner and cheaper fee mechanisms similar to Digital Funds Switch (EFT), cellular funds, on-line banking and card funds.
These types of transacting aren’t solely safer however are much more superior and efficient signifies that companies can use to transact, he mentioned.
South Africa has seen an annual lower of 30% in cheque utilization, with cheques contributing lower than 0.1% of the full funds ecosystem in South Africa.
“Throughout stage 5 lockdown, volumes decreased by 80% and we now have seen companies proceed to adapt to extra digital and safe choices of transacting,” he mentioned.
The financial institution mentioned it has taken the next steps as a phased strategy to exit cheques as a fee instrument:
“The choice to exit cheques has been achieved with nice consideration to make sure that we provide fee alternate options for our prospects who’ve been utilizing cheques,” mentioned Matlhole.
“We’ll proceed to work with our prospects to make sure a clean transition to fee alternate options which can be safer, environment friendly and price efficient than cheques.”
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