Zambia to Phase Out Cheques by End of 2025

The Bank of Zambia has announced that cheques will cease to be accepted as a payment instrument in Zambia effective December 31, 2025.

The decision, in line with the National Payment System Vision and Strategy 2023 to 2027, has been prompted by a sustained decline in cheque usage due to the emergence of more efficient electronic payment methods.

“Advancement in financial technology has seen the emergence of electronic methods of payments that are more efficient and instant,” the public notice stated. It also cited concerns over the “delayed and lengthy processing periods” of cheques, their low transaction value limit, and the risks of fraud and unpaid cheques.

The phasing out of cheques will be rolled out in three key stages. By December 31, 2024, commercial banks and non-bank financial institutions will no longer issue new cheque books to customers. Customers will have until June 30, 2025, to issue or write a cheque, after which all outstanding cheques must be presented for payment by December 30, 2025.

The Bank of Zambia, together with industry bodies, will undertake stakeholder consultations and public awareness campaigns to inform citizens and businesses about the transition and alternative digital payment options available.

The move is expected to drive greater adoption of secure, instant, and environmentally-friendly electronic payments, while optimizing resources used in cheque processing infrastructure and operations.

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8th July, 2024.