BoZ bans issuance of cheques over K25,000

Fri, 23 Jun 2017 11:10:27 +0000

By BUUMBA CHIMBULU

BUSINESSES should utilise the Electronic Fund Transfer (EFT) mode for any invoices above K25,000 following the limits on cheques put in place by the Central Bank, says Bankers Association of Zambia (BAZ).

According to the Item Value Unit issued by the Bank of Zambia (BoZ), effective July 5th 2017, banks will not accept any cheques above K25,000.

Similarly, for foreign currency cheques, the Central Bank put a maximum of US$500,000.

This means that any cheques issued above these thresholds will not be accepted by commercial banks countrywide.

BAZ chief executive officer, Leonard Mwanza, said in an interview that bank clients should utilise the EFT mode of payments to conduct businesses.

Mr Mwanza advised clients to counter check and ensure that not more than K25, 000 cheques were issued.

“EFTs are very efficient and they should be able to get value before the end of the day or latest by the following business day. Money will be moving from the payers to the receivers in a more efficient manner.

“For those who wish to withdraw above K25,000 at the counter again they cannot write a cheques amount above K25,000; they can only use other means like letter giving specific instructions and usage of the cheque,” he said.

He explained that the development was good for customers because they would be improving their cash flows by receiving money instantly using the EFT.

He also said the development would bring efficiency in the banking industry.

“This for the sector brings in more efficiency because under the EFT, we have four sessions everyday, depending on the time the instruction has been sent to the bank. So we expect that if instructions are sent today in the morning, before the end of the day, the money should be credited without any problem. So it is just one way of making payments in a more sufficient manner,” he said.