Bank of Ghana directs limit to cheque payments to aid cash-lite migration

The Bank of Ghana (BoG) has directed banks to limit cheque payments to third parties (payees other than the account holder) over-the-counter with effect from July 2, 2013.

According to the central bank, this new directive which came about following consultation with the banking industry is part of measures to encourage migration to a cash-lite society and the use of non-cash modes of transaction settlement.

“With effect from July 2, 2013 cash payments in honour of cheques to third parties at bank counters shall not be above GH¢10,000,” the BoG said in a statement..

The central bank explains that the limit does not apply to third party cheques that are presented for the credit of an account through clearing. It does not also apply where the payee is the drawer of the cheque, BoG added.

The BoG  expects that the implementation of the limit will “reduce the incidence of fraud and other malfeasance as well as limit the scope for abuse of the banking system by criminals.”

It hinted that the limit or threshold for encashment of cheques over the counter by third parties would be reduced further in January 2014.

The central bank encouraged bank customers to use the various payment instruments such as cards and mobile money available for transaction settlement in the banks and at point of sale terminals.

Stakeholders in the financial sector just ended a National Payment System Strategy workshop  hosted by the BoG. It was organised to provide the opportunity for industry players to discuss the development of payment systems in the country.

By Ekow Quandzie