Bank of Zambia to phase out cheques by 2025, cites decline in usage, fraud concerns

The Bank of Zambia (BoZ) has announced plans to phase out cheques by December 31, 2025, following a significant decline in their usage and concerns over fraud.

The value of cheque transactions had dropped from K39.2 billion in 2014 to just K7.8 billion in 2023, representing an 80 percent reduction.

In a statement released on Wednesday, BoZ highlighted several reasons for the decision, including the increasing unreliability of cheques.

The Central Bank cited issues such as dishonoured payments due to insufficient funds or invalid signatures, which have eroded confidence in the payment system.

Fraud was another major concern, with BoZ pointing out that cheques, being paper-based, are prone to forgeries, alterations, and theft.

The aging interbank cheque infrastructure and delays in the delivery of goods and services were also noted as contributing factors.

In place of cheques, BoZ recommended alternative payment methods, including digital banking, electronic funds transfers, mobile payment systems and point-of-sale transactions.

The Central Bank had already started informing the public and businesses about the upcoming changes through various channels, including radio, television, newspapers, and social media.

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