Cheques exceeding in value of R50 000 will no longer be accepted from 1 May 2020 in order to further mitigate cheque fraud and to support the drive by the banking industry to exit cheques within the next three years.
PASA published a media statement on 30 July 2019 announcing the reduction of the cheque item limit from R500 000 to R50 000 effective 1 May 2020.
What will the impact be from 1 May 2020?
- Any cheque issued exceeding the limit will be rejected and incur a penalty fee.
- Any cheque accepted exceeding the limit will be rejected by the clearing system and returned.
- Cheques above R50 000 that are received before 1 May 2020 but not negotiated or deposited for collection before this date will be rejected and a penalty will be levied.
- Split payments using multiple cheques will not be allowed.