The Bank of Papua New Guinea (BPNG) recently advised that from close of business on the 31st of December 2023, private sector cheques will not be accepted for payment by commercial banks and financial institutions in PNG. Any private sector cheques presented after the date mentioned will not be honored.
The National bank stressed that although cheques have been used in PNG for many years to make payments, using cheques has proven to be time-consuming, prone to errors and vulnerable to fraud.
BPNG and commercial banks affirmed that the discontinuing of private sector cheques does not breach any laws or regulations, or infringe upon the rights of individuals or businesses.
BPNG noted that the Government is gradually shifting towards electronic payments, however the use of government cheques will not be affected by this decision, meaning, government cheques will still be received by individuals, institutions or companies for the payments of services.
Discontinuing private sector cheques is part of the BPNG’s program to streamline PNG’s payment system, reduce costs, enhance security, and align the nation’s banking practices with global best practice, and the decision was made in consultation with the commercial banks and other financial institutions.
