Times Of Swaziland: ESWATINI 3RD SACU COUNTRY TO ELIMINATE CHEQUES

ESWATINI 3RD SACU COUNTRY TO ELIMINATE CHEQUES
================================================================================
BY ASHMOND NZIMA on 26/07/2021 08:34:00


MBABANE - Eswatini has joined the growing list of countries that are eliminating
the use of cheques as a means of payment.
The Central Bank of Eswatini (CBE) alongside EBA, in a joint statement,
announced an intention to discontinue cheques as a means of payment in the
country with effect from the first day of next year (2022). EBA is the Eswatini
Bankers Association. According to the statement, cheques are prone to fraud;
have a lengthy processing period; and have restricted acceptance, among other
limitations. “Their declining usage with the availability of alternative
payment options means that the industry can no longer support their costly and
ageing processing infrastructure. In this regard, Eswatini banks and Eswatini
Building Society will no longer accept cheques for deposit or encashment from
the January 1, 2022,” reads the statement in part. The public has been
encouraged to embrace the other available payment options that include internet
and mobile banking; electronic funds transfer SWIFT, points of sale as well as
debit and credit cards, among others. Eswatini is the third Southern African
Customs Union (SACU) country to eliminate cheques. South African banks stopped
accepting any cheque for deposit or encashment after December 31 last year.
Member
Another SACU member State, Namibia, first announced that foreign issued cheques
will no longer be accepted at any bank in that country for deposit or encashment
back in 2013. The discontinuation was said to be as a result of international
banks that have discontinued their clearing services to the Namibian banking
industry. Namibia then decided to phase out the use of cheques as a payment
instrument on June 30, 2019. Other SACU members are Botswana and Lesotho. Big
companies like the Lesotho Electricity Company stopped accepting cheques back in
2019. “Many businesses still cling to paper cheques because of familiarity and
universality. Another reason why businesses hold onto their cheque books is
because of the paper trail,” said an expert.