Malawi phases out cheque use

**By Brenda Kayo: **

The Reserve Bank of Malawi (RBM) and Bankers Association of Malawi (Bam) have announced the phasing out of the use cheques as a payment instrument in Malawi.

Under the new arrangement, banks will no longer issue new cheque books while existing cheques will only be processed during a transitional period that ends on March 11, 2027.

After that date, banks will no longer be permitted to process any cheque.

The announcement follows the publication of the Bills of Exchange (Amendment) Act of 2026 on September 11.

The Act provides for the cessation of the issuance and use of cheques in the country.

In a joint public notice, RBM Governor George Partridge and Bam Chief Executive Officer Lyness Nkungula say the decision is part of efforts to promote payment methods that are faster, safer and more efficient.

The two institutions have urged bank customers, businesses and other users of cheques to start making arrangements to shift to alternative payment channels ahead of the final deadline.

As part of the transition, cheques presented for clearing on or before September 29, 2026 may continue to be processed by banks until March 11, 2027.

This means customers who currently hold cheque books or have outstanding cheque transactions have a limited period within which to complete their cheque-related payments and make arrangements for alternative methods.

After March 11, 2027, banks will no longer be allowed to process cheques, effectively bringing to an end their use as a recognised payment instrument within the banking system.

RBM and Bam have advised customers to consider a range of electronic payment options that are already available through banks and other licensed payment service providers.

These include internet banking, mobile banking, electronic funds transfers (EFTs), payment cards and mobile money services, among other approved digital payment solutions.

The institutions say the transition is intended to support the continued development and adoption of electronic payments, which have increasingly become an important part of financial transactions.

For businesses and organisations that have traditionally relied on cheques to pay suppliers, employees or other service providers, the announcement means they will need to review their existing payment arrangements and adopt alternative channels before the deadline. RBM and Bam have further encouraged members of the public to engage their respective banks and licensed payment service providers for information on available payment channels and how they can be used.