Reduction in cheque item limit from N$500,000 to N$100,000 by 1st of February 2016 and phasing out of cheques by 31st of December 2017

2015-12-04 00:00:00.0

Phasing out of cheques altogether, is anticipated by the 31st of December 2017 and earlier phasing out of cheques by customers is strongly recommended to avoid any inconvenience or interruptions.


Any cheque payment made in excess of N$100,000 (one hundred thousand Namibia Dollars) will no longer be accepted by banking institutions nor will Namclear be able to process such payments after this date.
 

All customers and banking institutions are hereby informed that the last date for the depositing of all cheques exceeding N$100 000 (one hundred thousand Namibia Dollars) drawn on any bank in Namibia is the 15th of January 2016 and the associated inter-bank clearing will be completed by the 21st of January 2016. Any cheque payment in excess of N$100 000 (one hundred thousand Namibia Dollars) which is made after the 21st of January 2016 will not be handled on a collection basis.


The public should take note that split payments whereby amounts exceeding N$100,000 are split into two or more smaller amounts is a contravention of the existing payment rules and will not be tolerated. The reduction of the cheque item limit will lead to greater efficiency as no uncleared effects are associated with alternative payment methods.
 

This is an important and significant event in the National Payment System and the cooperation of all banking institutions in Namibia will be required in order to ensure a smooth transition from paper based payment instruments to electronic ones. PAN is the association responsible for managing the national payment system in Namibia. PAN is recognised and licensed by Bank of Namibia, in terms of the Payment System Management Act, 2003 (Act No. 18 of 2003), as amended with the objective of managing the national payment system, is mandated to organise, set technical standards, regulate the participation of its members in the national payment system and all matters affecting payment obligations and the clearing and netting of payment obligations.
 

Please visit www.pan.org.na to obtain a copy of this notice.
 

For more information customers should contact their individual banking institutions immediately to obtain the relevant information.

Article provided by Payments Association of Namibia


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