Press Release on Alternatives to Private Sector Cheques Given Thumbs Up

PRESS RELEASE
ALTERNATIVES TO PRIVATE SECTOR CHEQUES GIVEN THUMBS UP

Customers in remote areas now have several easy-to-use and more secure alternatives to private sector cheques, well within time to replace private sector cheques.

Even though there are just over 11 weeks to go before the use of private sector cheques officially ends, on 30 June 2024, the commercial banks are offering digital products,
vouchers and private bills of exchange, such as Special Withdrawal Forms (SWFs).

As these digital services continue to roll out, farmers and businesses in remote areas will have access to secure and lower cost payment alternatives to the expensive process of receiving funds from agents by cheque and incurring the cost of redeeming the cheques in trade stores or other service locations.

Several prominent business and political leaders had publicly expressed concern about the potential negative impact to citizens in remote areas if private sector cheques were discontinued.

The National Payments Council Sub-committee (NPCSC) members have held a series of meetings with executives representing the PNG business community, and more recently with Hon. Allan Bird MP, Governor of East Sepik Province. The feedback from these meetings confirmed that the awareness program and preparations for alternatives to cheques are adequate.

The NPCSC plans further meetings with executives representing Chambers of Commerce in the provinces to discuss how the alternative solutions, now available, will benefit customers.

BPNG emphasises that this decision by the National Payments Council (NPC)* to end private sector cheques does not affect government cheques, which will continue to be accepted.

*The National Payments Council comprises PNG’s licensed financial institutions and is chaired by the Bank of Papua New Guinea.

Private sector cheques will not be accepted for payment by commercial banks and financial institutions in PNG after close of business on 28 June 2024. Private sector cheques presented after 28 June 2024 will not be honoured. Unused cheque books are redundant after 28 June 2024. Individuals, businesses, companies and institutions who have cheque books should contact their banking organisation as soon as possible to arrange secure alternative payment methods that comply with the Bills of Exchange Act.

Media enquiries: Mr Gaona Gwaibo, Manager, Payments System Department Tel: 322 7208 or email: [email protected]

Authorised by: Ms. Elizabeth Genia, AAICD
Governor, Bank of Papua New Guinea. Chair, National Payments Council