Standard Bank announced on Wednesday it had determined to stop the issuing of cheques as of December 2020 following the a variety of restrict savings added by the South African Reserve Bank (SARB).
The lender additionally stated the persisted reduction of cheque usage at some point of the Covid-19 lockdown duration as properly as the adoption of digital and cheaper preferences by way of its clients as different motives behind the move.
Head of Payment at Standard Bank Busi Radebe stated the financial institution would align with a co-ordinated industry phase-out layout in order to help clients transition, mainly given the business process adjustments that would want to take vicinity throughout all stakeholders.
“Our clients will have between August to the cease of December 2020 to undertake new charge methods,” she said.
Radebe said cheque books were seldom considered in society today, with the convenience of contactless cards taking over the payments space.
Historically, clients would have been able to pay up to R5 million the usage of a cheque. However, this limit has decreased over time pushed by means of normal usage. The closing restriction reduction came into impact on May 1, which now solely allows for repayments of up to R50 000.
Standard Bank announce the following method for the process:
1 September 2020 – stopping the one-of-a-kind presentation and clearance of cheques. All cheques will comply with the ordinary seven enterprise day clearance.
1 October 2020 – Issuing of new cheque books will be discontinued.
31 December 2020 – Official exit of cheque issuing with no Standard Bank cheques allowed for presentment / savings submit this date.
Radebe said Standard Bank was once constantly evolving and searching for the excellent solutions to provide cost to its clients.
“We welcome the new change as we trip in addition into our digital transformation and feel that the approach, we have taken will be seamless and permit us sufficient time to work with our purchasers to adopt digital payments methods.
“A mixture of our new and current repayments solutions will enable our cheque consumers to transition to digital payments that are greater impervious and value effective,” she said.
A few months ago, Standard bank became the first South African bank to provide a digitised Escrow answer to its clients on its public website. It is an online service designed to defend individuals from risks associated with buying or promoting items or offerings from unknown individuals.