PNG will be removing private sector and bank cheques
The National Payments Council, chaired by the Acting Governor of the Bank of Papua New Guinea, Elizabeth Genia, have announced that the use of private sector and bank cheques will be discontinued by 31st December, 2023.
Why are the BPNG eliminating cheques?
The Bank of Papua New Guinea have decided to eliminate cheques as a method of payment due to the higher risk of fraud.
The disadvantages of cheques are two-fold:
- Cheques require a longer process time.
- Dishonoured cheques mean the whole payment time has to start again.
What other payment options do I have?
The launch of the Kina Automated Transfer System in 2013 has increased bank transfer processing times to minutes, instead of days - Fully electronic payment systems are the way of the future.
What types of electronic payments are there?
Electronic payment systems use a variety of methods such as:
- BSP Personal Internet Banking
- BSP Business Internet Banking
- Debit and credit card
- Mobile phones
What are the benefits of electronic payments?
- Operational efficiency – You can know within minutes when a payment has been received and/or made.
- Improved cash flow – Instant payments mean you can manage your finances quicker and not have to wait days for when a cheque clears.
- Reduced fraud risk – No need to worry if you have been given a fraudulent check.
- Cost savings – electronic transfers eliminate the cost of depositing cheques.
BPNG Media Release
Click here to view the full press release
July 2023 - BPNG Press Release
- 14th July, 2023 - The last day you can order BSP cheque books for personal accounts.
- 31st August, 2023 - The last day you can order BSP cheque books for non-personal accounts.
- 29th December, 2023 - The last day you can cash or deposit any private sector or bank cheques to your BSP account or at any BSP PNG branches.
After 29th December, 2023, your cheques are no longer a valid payment method. You should destroy the cheques (cut them in two or more) and dispose of your cheque book.
Any Private Sector BSP cheque will not be honoured after 29th December, 2023, regardless of where they are deposited. You will need to make a payment to a payee via an alternative method after 29th December, 2023.
We can no longer accept any cheques for deposit after 29th December, 2023. If you receive a cheque, you’ll need to contact the person who gave it to you and ask them to pay you directly into your bank account.
We can no longer issue cheque books after 31st August, 2023. Now is a good time to start transitioning to alternative payment methods.
Your cheques will no longer be a valid payment method. You should destroy the cheques (cut them in two or more) and dispose of your cheque book.
If you receive a Private Sector cheque after 29th December, 2023, you will not be able to deposit it into your BSP account. You will need to contact the person who issued the cheque to arrange for them to make payment in another way.
BSP is phasing out Private sector cheques as Central bank Papua New Guinea made an announcement that private sector cheques will be removed by 29th December, 2023. Cheques are a less secure and convenient payment method than other options, such as internet banking, mobile banking, . Cheques can be lost or stolen, and they can be difficult to track. They can also be a source of fraud.
Private sector Cheques will be phased out at BSP on 29th December, 2023. After this date, cheques will no longer be accepted for deposit or payment.
After 29th December, 2023, Private Sector cheques will no longer be a valid payment method. You should destroy the cheques (cut them in two or more) and dispose of your cheque book.
Your private sector cheques will no longer be a valid payment method.
You will need to use one of the alternative payment solutions listed above , in order to make payments after 29th December, 2023.