The Payments Association of South Africa announced the decision to reduce the maximum value from R5m to R500 000 on 02 December 2011. This industry wide change will come into effect from 16 July 2012. Banks will not be able to process cheques that exceed R500,000 and will return them to the depositor as "Unable to Collect – Exceeds Country Item Limit".
Customers who write large-value cheques have been made aware of the new regulation and advised on alternative electronic payment mechanisms.
Customers are rapidly moving away from using cheques in favour of electronic products such as online electronic funds transfers via Online Banking. Less than 1% of FNB customers that make use of Cheques are affected by this change.
Spokesperson/Senior Communication Manager, FNB
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