Central Bank crushes cheques

By Lunga Masuku
MBABANE – In a bid to move digital, the Kingdom of eSwatini will from January 1, 2022 stop the issuing and acceptance of cheques as a means of payment.
This is according to a statement issued by the Central Bank of eSwatini early this week. This was a joint statement between the financial institution and the Bankers Association. It further mentioned that other banks will issue their own statements in lieu of this communique.
“The decision to discontinue the issuing, acceptance and collection of cheques is in the interest of moving all payments to safer, faster and more cost effective payment platforms, which are now available and widely supported by our banking system.
“Cheques are prone to fraud, have a lengthy processing period, have restricted acceptance, limited production for the consumer, and their declining usage with the availability of alternative payment, options means that the industry can no longer support its costly and ageing processing infrastructure,” read the statement in part.
In this regard, eSwatini banks and Swaziland Building Society will no longer accept cheques for deposit or encashment from January 1, 2022.
Adding, the statement urged the public to adopt and use the alternative payment platforms that are available in the banking system and Swaziland Building Society which internet banking, mobile banking, electronic funds transfer, SWIFT, points of sale, debit and credit cards and other products which the industry has introduced, and continues to develop and rollout.
Customers have been advised to communicate with their respective financial institutions on the available payment options in their institutions for enabling migration, and the training on the usage where necessary.
The central bank and the banker’s association are committed to ensuring that the transition to the new platforms is smooth and that the general public is not inconvenienced.