Banks phase out use of cheques

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Banks phase out use of cheques
Banks phase out use of cheques

Africa-PressLesotho. The Central Bank of Lesotho (CBL), the Payments Association of Lesotho (PAL), and the Bankers Association of Lesotho (BAL) have issued a statement informing the public that both the issuing and acceptance of cheques will stop with effect from30th September 30, 2021.

The move is necessitated by the numerous challenges usage of cheques poses for banks.

These include: lengthy processing period, fraud perpetrated through the issuing of cheques, cheques as an expensive payment instrument, the restricted acceptance of cheques, declining usage, limited education and protection for the consumer, outdated cheques processing system and the impact of the Covid-19 outbreak.

Lesotho banks will educate their clients on alternative electronic payment methods that may be used and all affected stakeholders and clients are requested not to write/draw or even accept cheques after September 30, 2021.

Cheques that have already been issued will not be redeemed after September 30, 2021.

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