Tuesday, October 21, 2014
Text Size

RBM Backs Banks on Third Party Cheque Encashment

Malawi’s central bank has backed a move by local commercial banks to suspend encashment of third party cheques; a decision currently on hold after the Malawi Law Society obtained a court injunction Tuesday.

Reserve of Bank of Malawi spokesperson Ralph Tseka told Zodiak Online that the suspension would reduce fraud.

“In as far as elimination of fraud is concerned; enhancement of cheques over the bank counter should be discouraged. It would also help government control fraud and people would be encouraged to open bank accounts,” said Mr. Tseka.

However RBM has faulted the Bankers Association of Malawi for not doing enough to sensitize people about the move hence the resistance.

The association suspended all third party Cheques on April 10, citing massive fraud said to be costing banks about one hundred million kwacha annually.

Meanwhile, the injunction by the Malawi Law Society renders temporary relief to the decision by the country’s commercial banks.

MLS president John Gift Mwakhwawa confirmed the development obtaining the injunction, insisting that the move by the bankers is illegal.—Zodiak Online


Share this post


0 #2 Vyaya 2012-04-19 10:33
Thats what we have been saying banks in Malawi dont value customers as long as they are making profit thats all. How would yu come up with such a decision without involving its stake holders? Do you asume everyone has an account with you or MUST open an account with you? WHY? To be paying VAT? May be Bingu ordered you to be doing this so as to collect more VAT from people? Whats you r logic here? I have NEVER seen this in any country. Even talking on phone in banks in Malawi is big issue while in most countries you freely talk inside banking halls. Whats our fackin Internal Auditors with all their ACCAs, CIAs etc doing to advise banks best control measures? Malawi is full of these bunches of fools with ACCA, CIA, FAC, Kay AA, kaya ACA, CIMA with no practical knowledge but for salary only. Malawi full of educated fools........If the education brings money malawi will be full of billionairs BUT we have too many ACCA , CIA ETC poverty striken individuals who went to xool not to get knowledge but to try to have more salary. Just after finishing their studies 1 yr down the line ask them about their qualification, they cant tell anything they just passed exams. See Banks are coming up with absurd controls and yet you guys who studied internal and external controls, risks are just sitting and listening!!! Hey Accountants why shd it take Lawyers to get an injunction??? SOCAM HALLOWWW!!!
0 #1 Mr.Sattar 2012-04-19 07:34
To open a bank account is an option not obligatory as bank charges are prohibitive per month-so if you need to use money for emergency say funeral and your only hope is your cash cheque, so you have to deposit and wait for agonising 3 days for clearance and miss funeral-or pay a madness charge of K15,000 for same day clearance-in these tough economic times, instant cash is sometimes essential for basic needs and any unnecessary delays will only cause further frustration and misery

This content has been locked. You can no longer post any comment.

Designed By: ZODIAK IT TEAM : All Rights Reserved 2012

Login Form