Notice on Reduction of Cheque Dishonour Period Four (4) to Three (3) Days

Public Notice 




Since 2013, the Kina Automated Transfer System (KATS) has been operating in PNG. The KATS enables same day electronic payments and has made cheque processing more efficient.

This notice is to advise the general public that Bank of Papua New Guinea (BPNG) has reduced the cheque dishonour period to three (3) business days from the previous four (4) days. This change is effective for any cheques presented on or after Wednesday, 13th January, 2016, and dishonoured on or after Monday, 18th January 2016.

Once a cheque is deposited at a bank, the paying bank has three business days to process and/or dishonour the cheque. If the cheque is not dishonoured within this period, the cheque is automatically cleared by the Automated Clearing House (ACH) which is part of KATS, and the funds made available to the payee’s account. This practice is part of the KATS System Rules and all banks are required to comply with this change. Compliance with the National Payments System (NPS) Act-2013, Standards and Rules are monitored and enforced by the Oversight and Compliance Unit at the Bank of PNG.

For further information, contact Mr Gaona Gwaibo, Manager, Payment Systems Department on telephone number 3227-534, email: [email protected]


Authorised by:   Loi M Bakani, CMG