Cheques will not be accepted as payment instruments in Zambia from 31 December 2025, the Bank of Zambia has notified.
In a public notice issued yesterday, the central bank explained that the decision to phase out cheques had been necessitated by a sustained decrease in cheque usage by individuals and businesses.
The trend is attributed to more efficient and instant electronic payment methods, inefficient turnaround time on value due to lengthy processing periods, low transaction value limits, and insecurity as cheques are more prone to frauds associated with forgery, alterations, theft, and unauthorized use.
Other factors include the risk of banks improperly handling unpaid cheques leading to operational losses and climate change considerations as cheques require the use of paper.
The central bank has issued scheduled timelines for phasing out cheques.
The deadline for commercial banks and non-bank financial institutions to issue new cheque books to customers is 31 December 2024. By 30 June 2025, customers should have ceased issuing cheques, and all cheques issued before then must be presented for payment by 30 December 2025.
