Bank Windhoek cheque limits in effect from 2016

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In anticipation of the phasing out of cheque payments by January 1, 2018, Bank Windhoek will reduce its cheque limits per transaction from the existing N$500 000 to N$100 000 as from Saturday, January 16.

Authorities recently informed the banking public that the process of elimination and phasing out of customer cheques will take place during the next two years.

Continuous customer engagement will take place during this process, envisaged to be concluded by January 1, 2018.
The Payment Clearing House (PCH), under the auspices of the Payment Association of Namibia (PAN) – which is recognised and licensed with the Bank of Namibia – has embarked on an industry initiative to reduce cheque limits per transaction, from the existing N$500 000 to N$100 000.

The rationale and benefits behind this decision, made by PAN, include that customers should embrace electronic payment methods as a more effective, secure and safer medium to execute payments. The issuing and acceptance of cheques is globally in the process of being phased out and Namibia should be part of global best practices. Retail markets are adopting more credit and debit card facilities.

Retail markets in Namibia and South Africa already engaged in the process of reducing cheque payments over the past years with the “No cheques acceptance” approach, reduced and ultimate elimination of cheque fraud, and more cost effective options will be available.

The directive means that business and individual customers may not issue any cheque for an amount exceeding N$100 000 per transaction. Single cheque deposits exceeding the prescribed amount will no longer be accepted, or processed, by any Namibian banking institution,” said Chris Matthee, executive officer of retail banking services.

“Customers are also not allowed to “split” any amount to be paid in excess of N$100 000 between more than one cheque per single transaction. The second phase of the directive will be thoroughly communicated to all customers to ensure that all customers are ready and have alternate payment mechanisms in place with the ultimate phasing out of all cheques by 31 December 2017,” Matthee said.

“In an effort to encourage customers to make use of electronic banking services, Bank Windhoek has decreased monthly Internet banking subscription fees by almost 40 percent for individual and business customers, with effect from July 1, 2015,” he said.