The Bank of Zambia (BoZ) has announced that, effective June 26, 2026, cheques will no longer be accepted as a payment instrument in the country. This decision aims to promote electronic payment methods, enhance security, and reduce the environmental impact associated with paper-based transactions. The BoZ encourages the public to adopt alternative payment methods such as electronic funds transfers, mobile banking, and online banking.
The phasing out of cheques is part of a global trend, with many countries discontinuing their use due to several key factors:
1. Declining Usage: The value of cheque transactions in Zambia has declined by 80% over the past decade, reflecting a shift towards more efficient payment methods.
2. Advancements in Technology: The rise of digital banking solutions offers faster, more convenient, and secure alternatives to cheques.
3. Security Concerns: Electronic payments reduce risks associated with cheque fraud and lost or stolen cheques.
4. Environmental Impact: Reducing paper-based transactions aligns with global efforts to minimize environmental footprints.
Countries like Denmark ceased accepting cheques in 2017, and New Zealand followed suit in 2021, citing similar reasons for the transition.
As Zambia approaches the June 2026 deadline, financial institutions and businesses are urged to prepare for this change by adopting and promoting electronic payment systems. The BoZ remains committed to facilitating a smooth transition towards a more secure and efficient payment landscape.