Namibia will phase out the use of cheques as a payment instrument by June 30, 2019, according to the country’s Payments Association (PAN).
This will be replaced by an electronic payment system, the country’s central bank said.
The central bank and the financial sector had set Dec. 31, 2017 to phase out the use of cheques but the process had been postponed to next year.
As part of the process, the banking institutions have been issuing Euro MasterCard Visa (EMV) compliant cards and have been recalling the magstrip cards that are in circulation.
The central bank and the Bankers’ Association of Namibia have since requested cheque processing institutions to carry out an impact assessment to review and evaluate the impact and the new development will have and to ensure the efficient phasing out of cheques.
PAN said in a public notice on Friday that the move will mean that Namibian banks will no longer issue or accept cheques after June next year.
“The phasing out of cheques is a significant event in the National Payment System, therefore, PAN encourages the cooperation of all banking institutions in Namibia, to work together in promoting efficient alternative payment methods,” the association stated.
Meanwhile, PAN said people should take note that individual banks would initiate their own cut-off dates for cheques leading up to the phasing out date.
PAN is the association responsible for managing the national system in Namibia and is recognised.
It is licensed by the country’s central bank, Bank of Namibia, to set technical standards and regulate the participation of its members in the payment system.(Xinhua/NAN)