Nedbank says that it’s going to begin phasing out cheques as its purchasers transfer to safer and cost-effective fee strategies.
That is consistent with different banks in South Africa, it mentioned, noting that the transfer is in response to steadily declining demand for, and acceptance of, cheques as a fee mechanism by South African shoppers and companies lately.
The gradual discontinuance of cheques applies to each issuance and acceptance by the financial institution.
Anton de Moist, chief shopper officer at Nedbank Retail & Enterprise Banking, mentioned most prospects have migrated to safer, handy and cost-effective digital and card-based fee options.
“We’ve observed a gentle discount in requests for, and use of, cheque books and bank-issued cheques.
“The outbreak of Covid-19 has exacerbated the decline in cheque utilization tremendously and even with the rise in financial exercise beneath relaxed lockdown situations now we have seen earlier customers staying away from cheques and shifting to digital and card fee options,” he mentioned.
The primary section of the method begins on 1 September 2020 and can see Nedbank now not printing or issuing new cheque books or providing bank-issued cheques.
The financial institution may also now not offer particular clearance on cheques from that date, nor will it return any bodily cheques utilized by purchasers to them with their month-to-month statements. Digital pictures of those cheques will, nonetheless, nonetheless be obtainable on request, it mentioned.
“Our purchasers are nonetheless capable of make cheque funds for now, and Nedbank will proceed to simply accept cheques as fee from our purchasers and prospects of different banks,” Anton mentioned.
Nedbank intends to section out the utilization of cheques fully throughout the course of 2021.
Earlier this month, FNB introduced that it’s going to additionally begin phasing out cheques, with issuance ending on 31 December 2020. Particular clearance and acceptance of combined deposits ended from the beginning of July.
South Africa has seen an annual lower of 30% in cheque utilization, with cheques contributing lower than 0.1% of the whole funds ecosystem in South Africa.
Since Could 2020, the utmost worth of cheques was restricted to R50,000 by the Funds Affiliation of South Africa (PASA).
Learn: FNB to cease issuing cheques from subsequent 12 months