Maximum cheque value slashed in South Africa
After consideration and consultation with key stakeholders, PASA will be reducing the maximum value for writing a cheque from the current value of R500,000 to R50,000, effective from 1 May 2020.
There are a variety of interoperable digital alternatives to cheques, ranging from debit and credit card-based payment solutions to electronic funds transfer (EFT) and real-time clearing (RTC) payments with future developments being designed to enable new offerings. Card, EFT and RTC payments have experienced significant growth as businesses and consumers adopt these payment mechanisms over cash and cheque-based payments.
The South African Reserve Bank has also endorsed the reduction decision, which was informed by an extensive consultation process. The SARB supported the decision to reduce the item limit on the basis that it supports the National Payment System Framework and Strategy – Vision 2025 objective of promoting safer, cost-effective and efficient electronic payments in the National Payment System (NPS).