Malawi to phase out cheques in favor of digital payments

The Reserve Bank of Malawi (RBM) and the Bankers Association of Malawi (BAM) have announced that banks will no longer issue new cheque books, following the publication of the Bills of Exchange (Amendment) Act, 2026. This move aims to modernize the nation's financial system by promoting safer and more efficient electronic payment methods.

Under the new regulations, cheques presented for clearing on or before September 29, 2026, may continue to be processed until a final deadline of March 11, 2027. After this date, banks will be prohibited from processing any cheques.

Authorities are urging customers and businesses to transition to digital alternatives, such as internet banking, mobile banking, electronic funds transfers (EFTs), payment cards, and mobile money services. The decision follows a decline in cheque usage, with regulatory statistics indicating that cheques accounted for only approximately 2% of the value and 0.04% of the volume of all retail payments.