Discontinuation of cheques
Provided by Eversheds Sutherland
Eversheds Sutherland represents the coming together of two firms with a shared ethos and commitment to client service excellence. We are known for our business savvy and industry intelligence and for providing innovative and ... more
Topics Banking & Finance Law
30 Dec 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.
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Helen Westman is a Partner, with Right of Appearance in the High Court of South Africa, at Eversheds Sutherland's Melrose Arch office. Helen has served as the Registrar to the...