Cheques can be countermanded (stopped), and if not presented within 15 months, they go stale [ss 3 and 89].
Cheques provide a chance for the customer’s signature to be forged. At common law, the bank is liable for a counterfeit cheque unless the account holder was negligent or neglected to notify the bank as soon as they became aware of the forgery.
Bank cheques are checks drawn on a single bank. It is uncommon for a bank to dishonour its own cheque, however there might be reasons such as fraud or that the cheque has been reported as lost or stolen. A person can request that a bank cheque be blocked if it has not been submitted for payment.
Cheques have fallen in popularity over the previous decade, with relatively few customers, government agencies, and businesses still using them. Alternative and more efficient payment methods, such as electronic and card payments, are to blame for the reduction.
The South African Reserve Bank (SARB), Financial Sector Conduct Authority (FSCA), Payments Association of South Africa (PASA), and Banking Association of South Africa (BASA) stated on November 27, 2020, that the issuance and acceptance/collection of cheques will end on December 31, 2020. As a result, no cheques will be accepted for deposit or encashment by South African banks.
Businesses and the general public are consequently asked not to write or accept cheques after December 31, 2020, and are advised to contact their banks to learn about alternative electronic payment alternatives.
