After the next version of the COFI Bill, there hasn’t as much regulatory movement in the industry. With a few timeline extensions, but in principle, the ‘new normal’ is upon us. COFI in itself requires change management interventions… but that’s a blog for another day.
The FSCA and SARB issued a joint media statement yesterday confirming that cheques will no longer be used in the national payment system.
SARB, FSCA, Payments Association of South Africa (PASA) and the Banking Association South Africa (BASA) are jointly communicating to the public that the issuing and the acceptance/ collection of cheques will cease, effective from 31 December 2020, as per the notice available at: http://www.resbank.co.za/RegulationAndSupervision/NationalPaymentSystem(NPS)/Legal/P ages/Information%20papers.aspx
The decision was taken due to the numerous challenges associated with the usage of cheques some of which included – lengthy processing period, fraud using cheques, expensive payment means, declining usage and the impact of the coronavirus pandemic (COVID-19) outbreak. There are more details in the consultation paper entitled ‘The phasing out of cheques in the national payment system’, issued on 2 October 2020, available at: http://www.resbank.co.za/RegulationAndSupervision/NationalPaymentSystem(NPS)/Legal/P ages/Documents-for-Comment.aspx
What does this mean for you?
South African banks will not accept any cheques for deposit or encashment after 31 December 2020. Banks will extensively communicate with clients leading up to and beyond the discontinuation of cheques. Furthermore, they have a duty to educate their clients on alternative electronic payment methods that may be used.
This is yet another example of the sustainable and digitally-enabled environment we find ourselves operating in more and more frequently.
Partner with us today to find out how you can enable your business to become even more future-focused. Let’s meander the changes together whilst keeping it simple.
Fathima Khan-Ahmod
Director
Ahmod Consulting 