Africa-Press – Lesotho. The Central Bank of Lesotho (CBL), Payment Association of Lesotho (PAL) and the Bankers Association of Lesotho (BAL) have announced the intension to ban both
the issuing and acceptance of cheques effective from September 30th. The development was communicated in the press statement released on Tuesday, which
the local banks share the same sentiments with. This announcement will prohibit usage of cheques for deposit or encashment. The statement explained that the CBL, Payment Association of Lesotho (PAL) and the
Bankers Association of Lesotho (BAL) jointly wish to inform the public that both the issuing and the acceptance of cheques will stop effective from September 30th this year.
CBL said this decision was taken due to numerous challenges associated with the usage of cheques, among them being the lengthy processing period, fraud perpetrated through the issuing of cheques as
well as its expensive nature as a payment instrument. It further noted that other challenges include restricted acceptance of cheques, declining usage, limited education and protection for the consumer, outdated
cheque processing system and the impact of the Covid-19 outbreak on the economy. The statement further emphasized that banks will communicate extensively with
their clients leading up to and beyond the discontinuation of cheques and will furthermore educate their clients on alternative electronic payment methods
that may be used. “Affected stakeholders and clients are therefore requested not to write, draw or accept cheques after September 30th 2021,” reads the statement.
Cheques that have already been issued will not be redeemed after September 30th and they are encouraged to approach their banks on the alternative electronic payment methods or direct any queries they may have related to the process of termination of the usage of cheques.
