Cheque Item Limit Reduction

After careful consideration and consultation with key stakeholders, The Payments Association of South Africa has agreed to the reduction of the maximum value for writing a cheque. The limit will be changed from the current value of R500 000 to R50 000, effective 01 May 2020.

This decision stems from the need for better risk management and the ongoing decline in the use of cheques as a payment method. The bank currently offers a variety of digital alternatives which are available for consumers ranging from Debit Cards to Internet Banking payments and Swift payments. Digital payments are not only more efficient than Cheques, but are also safer, more cost effective and more convenient for consumers.

The South African Reserve Bank has endorsed the reduction decision, which was informed by an extensive consultation process and agrees to the decision on the basis that it supports the National Payment System Framework and Strategy – Vision 2025 objective of promoting safer, cost-effective and efficient electronic payments in the National Payment System (NPS).

For any information regarding payment alternatives please contact your relationship manager or business suite.