* Cheques presented for clearing on or before tomorrow, September 29 may continue to be processed by bank to to March 11, 2027
By Duncan Mlanjira
Customers are being encouraged to adopt alternative payment channels available as banks will no longer issue new cheque books.
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A joint statement by the Bankers Association of Malawi (BAM) and the Reserve Bank of Malawi (RBM) states that the Bills of Exchange (Amendment) Act, 2026, which phases out the issuance of cheques as a payment instrument in Malawi, was published on September 11, 2026.
“This development forms part of ongoing efforts to promote the adoption of safer, faster and more efficient electronic payment methods offered by banks and other licensed payment service providers,” says the statement.
Thus banks will no longer issue new cheque books; and that cheques presented for clearing on or before tomorrow, September 29 may continue to be processed by bank to March 11, 2027.
The alternative payment channels that customers are encouraged to adopt include internet banking, mobile banking, electronic funds transfers (EFTs), payment cards, mobile money services, and other approved digital payment solutions.
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Customers requiring further information or assistance are encouraged to contact their respective banks,” says the statement, signed by BAM Chief Executive Officer, Lyness Nkungula and RBM Governor, George Partridge.
The phasing out of the cheques was announced by BAM and RBM in April 2025 to align with global trends of the decline in the use of this mode of payment.
Justification of the cheque cessation stems from cost and efficiency consideration amidst low usage — as regulatory statistics indicated then that only about 2% of value and 0.04% of the volume of all retail payments are made through cheque payments.
“As a result of this low usage, service providers are finding it costly to maintain the infrastructure and processes relating to cheque payments,” BAM and RBM had said in April 2025.
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“Thus, the cessation of cheques will save the economy the foreign currency usually associated with the maintenance or importation of clearing platforms, scanners, software, bandwidth and cheque base stocks.
“In addition, the cheque payment, clearing and settlement arrangements are synonymous with time-consuming process requiring frequent costly reviews and enhancements.”
The two institutions further stated that the comprehensive review to consider the cheque cessation also considered financial security, since “cheques as a payment instrument is highly vulnerable to fraud, forgery and counterfeiting — leading to financial losses on the service providers and consumers”.
“Thus, the discontinuance of cheques will enhance the reputation and integrity of the banking and payments industries in the country.”
Impact of technological advancements was also considered in the comprehensive review as in recent times, RBM has pioneered reforms in the country’s banking and payments landscape resulting in the emergence of innovative digital payment options — including mobile money and online banking services.
“Overtime, these innovative payment options have proven to be relatively faster, convenient and easier to use,” the statement said, adding that financial inclusion for all was also considered.
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