BoG to limit payments of third party cheques over the counter

Businesses and individuals will from next month be limited on the amounts they can withdraw with cheques given to them to clear over the counter.

This is because the Bank of Ghana has directed commercial banks not honor cheques exceeding 10 thousand Ghana cedis over the counter. The directive takes effect from July 2.

The regulator is rather asking the banks to pay these monies into the accounts of such bank customers. Head of Banking Supervision at the bank of Ghana, Franklin Belnye explains to JOYBUSINESS the rationale behind this directive.

“Globally there is a movement towards a cashless society but we try to say we can only have a cash-light society – in other words we can move to other modes of payment rather than relying on cash. You also remember that there are all sorts of risks associated with cash transactions such as being robbed of the money you withdraw from the bank. Whats more, the cheque environment is tries to encourage people to move to other modes of transactions such as the use of electronic and mobile money etc” he explained.

Banking Consultant and Lecturer at the Osei Tutu II Centre for Executive Education & Research, Nana Otuo Acheampong tells JOY-BUSINESS the directive is long overdue.

“The cash movement in the society has not helped the fight fraud in the banking system especially for the bank customers and so the limiting it to 10 thousand for 3rd party cheques should help to address the issue” he said.

Story by Ghana / Joy Business / Emmanuel Agyei