Cheque payments to stop: BSP

ALL Bank South Pacific Financial Group Limited (BSP) branches around the country will stop accepting private sector cheques as a means of payments today, says retail banking payments head Peter Komon.
He said by Monday, private sector cheques would be dishonoured regardless of where they were deposited and the payee would be required to make alternate payment arrangements.
Only public sector cheques, which include Bank of Papua New Guinea (BPNG), all levels of government, including state-owned enterprise cheques will be accepted at BSP after today.
“If you receive a cheque issued by a private sector entity after June 28, you will be advised to contact the drawer of the cheque to make alternate payment arrangements, either via internet banking, or a credit transfer,” Komon said.
“This is a directive from BPNG following consultation with the National Payments Council.
“All cheques received for deposits/encashment must be deposited before the close of business on Friday, June 28.
“BPNG will extend the settlement times for cheques to 6pm on the day to allow for excess cheque processing,” Komon added.
“The discontinuation of private sector cheques is part of BPNG’s efforts to streamline PNG’s payment system and align it with global best practices.
“Cheques require an inordinate amount of effort to handle, are far less efficient that available electronic payment channels, and can be lost or stolen, or forged.
“By doing away with cheques, we expect productivity gains, cost reductions, and enhanced security overall.”
Komon said there were alternative methods that did not involve using cheques, however, the best solution for customers and businesses depended on their specific needs.
He urged stakholders call BSP’s customer call centre on 320 1212 or 7030 1212 or email: [email protected] or visit a branch for help on this change.
“If the customer does not have any other means of getting an alternate method of payment for the cheque, please call into the branch and complete a branch withdrawal form.
“If there are multiple signatories to the account, a letter of instruction, advising of the withdrawal, and signed by required signatories per the account’s mandate/method of operation, will be required to facilitate the cash withdrawal request,” Komon said.