The Bank of Zambia has announced a significant shift in the country’s payment landscape, confirming the phasing out of cheques as a payment instrument.

Effective June 24, 2026, cheques will no longer be accepted for transactions. This decision comes after extensive consultations with stakeholders, including government entities, businesses, financial institutions, and the public.

A Decline in Usage and the Rise of Digital:

Several factors have contributed to this decision. The most prominent is the significant decline in cheque usage over the past decade. With the surge of electronic payment methods, cheques have become increasingly obsolete. Mobile banking, online transfers, and other digital platforms offer faster, more secure, and convenient alternatives.

Security Concerns and Environmental Impact:

Cheques present basic security risks, including forgery, alteration, and theft. The increasing number of dishonored cheques due to insufficient funds or invalid signatures further erodes trust in this payment method.

Moreover, the paper-based nature of cheques contributes to environmental concerns, while electronic transactions offer a more eco-friendly alternative.

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Cost Optimisation and Efficiency:

The continued maintenance of cheque-related infrastructure, including system upgrades, hardware, and software, has become increasingly costly. Given the declining usage, the Bank of Zambia has deemed these costs unsustainable.

A Move Towards a Cashless Future:

This decision marks a significant step towards Zambia’s transition to a more digital and efficient payment system. While some may initially feel apprehensive about this change, the benefits of increased security, convenience, and environmental sustainability are undeniable.

The Bank of Zambia has assured the public that enough time will be provided for businesses and individuals to adapt to this change. The transition period will allow for the smooth integration of alternative payment methods and ensure a seamless shift towards a cashless future.

The Road Ahead: A Gradual Transition

To ensure a smooth transition, the Bank of Zambia has outlined a phased approach:

• December 20, 2024: Circular issued to commercial banks and financial institutions outlining the roadmap for phasing out cheques.
• December 27, 2024: Public notice issued regarding the phasing out of cheques.
• February 28, 2025: Last day for customers to request cheque books from commercial banks.
• March 31, 2025: Issuance of cheque books by commercial banks ceases.
• June 24, 2026: Cheques are no longer accepted as a payment instrument.

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Embracing the Future of Payments

This move by the Bank of Zambia signifies a commitment to modernising the country’s payment infrastructure. By embracing electronic payment methods, Zambia aims to enhance efficiency, security, and convenience for both businesses and individuals.

This transition also aligns with global trends towards digitalisation and a cashless society. As Zambia embraces this new era of payments, it positions itself for a more efficient, secure, and sustainable financial future.