Gib banks to stop taking cheques as from Dec 31, 2023
Banks in Gibraltar will stop accepting cheques from the end of next year, the Gibraltar Bankers’ Association [GBA] said in a statement.
The decision follows a consultation initiated in 2021 and comes as an increasing number of customers are switching to electronic means of payment.
“Over the years, the use of cheques has reduced significantly and today most consumers as well as businesses use electronic means or cards as the preferred and more secure form of payment,” the GBA said in a statement announcing the decision.
“The lockdowns during COVID evidenced that remaining users of physical forms of payment were able to quickly adapt to these types of electronic means.”
“The GBA acknowledge that there will remain a small minority of consumers who would prefer or feel more comfortable continuing to use paper based transactions however the small volumes means it is no longer viable for banks to support the outdated systems required to support the provision and clearing of cheques.”
“As a result, it is intended that cheques will no longer be accepted by banks with effect from the 31st December 2023.”
“With a generous lead in time, banks will work with those more vulnerable or exposed to this change to ensure they are supported in the transition.”
The GBA first consulted with its members, later taking the views of the Gibraltar Financial Services Commission and the Ministry for Financial Services.
The GBA also commissioned a consultation paper seeking the views of stakeholders and representative bodies before taking the decision to stop accepting cheques.