Economist Backs BoZ Plans to Phase Out Usage of Cheques for Payments

An Economist has backed Bank of Zambia’s plans to phase out the use of cheques for payments by 31st December, 2025.

Speaking in an interview with Money FM News, Shabdin Mweemba notes that cheques have lost relevance since the coming of digital banking and money transfer systems.

Mr. Mweemba observes that the amount of money that could be transferred using cheques, has significantly reduced over the years from K100, 000 to K25, 000, hence people were bouncing cheques when the limit is exceeded.

He further states that a cheque has an expiry date which poses a negative effect on the people that are using them to transact.

Bank of Zambia has disclosed that it plans to phase out the use of Cheques as a payment instrument by 31st December 2025, following an 80 percent decline in usage, among other factors.