PNG will be removing private sector and bank cheques
The National Payments Council, chaired by the Acting Governor of the Bank of Papua New Guinea, Elizabeth Genia, have announced that the use of private sector and bank cheques will be discontinued by 31st December, 2023, however, to support customers as they transition to alternate payment methods when Private Sector cheques are phased out. BPNG has announced a 6 month extension to 30th June 2024.
Why are the BPNG eliminating cheques?
The Bank of Papua New Guinea have decided to eliminate cheques as a method of payment due to the higher risk of fraud.
The disadvantages of cheques are two-fold:
- Cheques require a longer process time.
- Dishonoured cheques mean the whole payment time has to start again.
What other payment options do I have?
The launch of the Kina Automated Transfer System in 2013 has increased bank transfer processing times to minutes, instead of days - Fully electronic payment systems are the way of the future.
What types of electronic payments are there?
Electronic payment systems use a variety of methods such as:
- BSP Personal Internet Banking
- BSP Business Internet Banking
- Debit and credit card
- Mobile phones
What are the benefits of electronic payments?
- Operational efficiency – You can know within minutes when a payment has been received and/or made.
- Improved cash flow – Instant payments mean you can manage your finances quicker and not have to wait days for when a cheque clears.
- Reduced fraud risk – No need to worry if you have been given a fraudulent check.
- Cost savings – electronic transfers eliminate the cost of depositing cheques.
BPNG Media Release
Click here to view the full press release
Key dates
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29th December, 2023 |
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30 June 2024 |
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FAQs
BPNG has extended the cut off time / date to Friday 28th June, 2024. After 28th June, 2024, your cheques are no longer a valid payment method. You should destroy the cheques (cut them in two or more) and dispose of your cheque book.
Any Private Sector BSP Cheque will not be honoured after 28th June, 2024, regardless of where they are deposited. You will need to make a payment to a payee via an alternative method after 28th June, 2024.
We can no longer accept any cheques for deposit after 28th June, 2024. If you receive a cheque, you’ll need to contact the person who gave it to you and ask them to pay you directly into your bank account.
There are alternative methods that don’t involve using cheques, however, the best solution for you depends on your specific needs. Please call our Customer Call Centre on (+675) 320 1212 | 7030 1212 or email us on servicebsp@bsp.com.pg. You can also visit our branches for help on this change.
Your cheques will no longer be a valid payment method. You should destroy the cheques (cut them in two or more) and dispose of your cheque book.
If you receive a Private Sector Cheque after 28th June, 2024, you will not be able to deposit it into your BSP account. You will need to contact the person who issued the cheque to arrange for them to make payment in another way.
BSP is phasing out Private Sector Cheques as Bank of Papua New Guinea made an announcement that Private Sector Cheques will be removed by 28th June, 2024. Cheques are a less secure and inconvenient payment method than other options, such as Internet Banking and Mobile Banking, Cheques can be lost or stolen, and they can be difficult to track. They can also be a source of fraud.
If you have any questions about the phasing out of cheques, you can contact your Relationship Manager or BSP Customer Call Centre on Phone: (+675) 320 1212 | 7030 1212 or Email: servicebsp@bsp.com.pg.
After 28th June, 2024, Private Sector Cheques will no longer be a valid payment method. You should destroy the cheques (cut them in two or more) and dispose of your cheque book.
Your Private Sector Cheques will no longer be a valid payment method. You will need to use one of the alternative payment solutions listed above, in order to make payments after the 28th June, 2024.