All BSP branches around the country will stop accepting private sector cheques
as a means of payments at the close of business on Friday 28th June, 2024.
BSP Retail Banking Head of Payments Peter Komon said, effective Monday 1st
July, 2024, private sector cheques will be dishonoured regardless of where they
are deposited and the payee will be required to make alternate payment methods.
Only Public Sector cheques, which include BPNG, all levels of Government, including State Owned Enterprise cheques will be accepted at BSP after Friday 28th June, 2024.
“If you receive a cheque issued by a private sector entity after Friday 28th June, you will be advised to
contact the drawer of the cheque to make alternate payment arrangements, either via Internet Banking or a Credit Transfer. This is a directive from the Bank of Papua New Guinea following consultation with the National Payments Council. All cheques received for deposits/encashment must be deposited before the close of business, Friday 28th June. BPNG will extend the settlement times for cheques to 6pm on the day to allow for excess cheque processing,” Mr 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 practice. 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,” Mr Komon went on to say.
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.
“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,” Mr Komon concluded.
