RBM changes govt cheques

The Reserve Bank of Malawi says that changes happening in the information and communication technology sector have compelled government to change the cheques currently in use.

In an interview in Lilongwe on Monday, RBM spokesperson Mbane Ngwira explained that the bank, in conjunction with the Accountant General’s office, decided to change the cheques by bringing in new ones with enhanced security features.

The new cheques will be in use from 1 March but the process of clearing old ones will be ongoing up to March 31 after which the old cheques will no longer be accepted.

Said Ngwira: “The ICT industry is changing very fast and this is one of the reasons why we have decided to change the cheques. With this change, government ministries and departments will have new accounts and we have already purchased new machines for checking the features on the cheques with ease.”

Ngwira said it was not unusual for the bank to change cheques, saying a similar process was done three years ago.

“What people should know is that cheques are normally valid for six months and instead of us restocking old cheques we decided to have new ones with enhanced features so that we are seen to be moving with the times,” said Ngwira.

“We are requesting the public to present all old cheques in their possession to commercial banks for clearing before the clearing date of March 31 after which replacement cheques will have to be requested from issuing offices,” said Ngwira.

The new cheques will be pink in colour, have a visible Malawi Government coat of arms on the face and a hologram of the coat of arms, which changes colour when tilted.

Bankers Association of Malawi President Misheck Esau commended the government for improving security features on the new cheques following the problems emanating from the old cheques.

“This is a very good move because government suffered a lot with the old cheques. However, as a way forward I would urge government to move towards removing cheques as other countries such as South Africa have done. With electronic banking we can remove some of the problems that come about due to cheque usage,” said Esau.

Malawi suffered one of its worst financial scandal in recent years when funds were looted using government cheques by people who did even render any service to government.