Cheques are a thing of the past

In a statement issued late last year, the South African Reserve Bank informed the public that, “the issuing and the acceptance/collection of cheques will cease, effective from 31 December 2020.” At the time, most banks had already begun phasing out this form of payment, with clients making use of cheaper, more convenient electronic payment methods.

Verbal vs. written contracts for conveyancing

According to the Reserve Bank, several challenges associated with the use of cheques in South Africa led to the decision to discontinue them. These included:

  • a lengthy processing period
  • fraud perpetrated through the issuing of cheques
  • cheques as an expensive payment instrument
  • the restricted acceptance of cheques
  • declining usage
  • limited education and protection for the consumer
  • ageing interbank cheque processing infrastructure
  • impact of the coronavirus pandemic (COVID-19) outbreak

(Source: www.gov.za)

Electronic images of cheques issued prior to 31 December 2020 will still be made available to consumers. 

While many millions of South Africans have limited access to cellphones and the internet, and the cost of data is a very real consideration, most areas of the country have ATMs and alternative payment points enabling access to electronic methods of payment.

Anyone needing assistance with electronic payment options or information regarding the discontinuation of cheques is encouraged to approach their bank directly.

Follow Snymans on Facebook for more legal information, tips and news about property.

Recommended for you

The difference between movable and immovable property
Contractual Matters

What happens if a mistake is made during the transfer of a property?[post_view before=""]

It’s an unfortunate reality that mistakes do sometimes occur in deeds and documents during the transfer process. Fortunately, however, the Deeds Registries Act makes provision for mistakes of this nature to be rectified.

Read More
What Happens To The Ownership Of My Property When I Get Married
Contractual Matters

Customary marriages and ownership of immovable property[post_view before=""]

Recognition of customary marriages in South Africa has undergone several shifts over the years through the implementation of new legislation. This has impacted not only the legal status of the parties to a customary marriage but also their ownership of and rights to matrimonial property.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

Rules Board Regulates Non-litigious Fees[post_view before=""]

The introduction of the Legal Practice Act 28 of 2014 has led to several changes in the juridical space, including one related to non-litigious fees – fees charged by attorneys for services that do not constitute litigation and are not finalised in court.

Read More
My name has changed - what happens to my property’s title deed?
Contractual Matters

Corporate actions and resolutions[post_view before=""]

In South Africa, the business and affairs of a company must be managed by its board of directors. As such, the board is responsible for the daily corporate and commercial affairs of the company.

Read More
Minors and immovable property
Contractual Matters

Defunct Homeowners Associations and Consents to Transfer[post_view before=""]

Title deeds of cluster developments commonly contain a condition which states that alienation or transfer of a property by the owner is not allowed unless consent from the Homeowners Association (HOA) is provided. Usually inserted by the relevant local authority when approving the cluster development, this type of condition also confirms that all subsequent owners of the property automatically become members of the HOA.

Read More

Need more Snymans content?

Sign up for our monthly newsletter.

Cheques are a thing of the past

In a statement issued late last year, the South African Reserve Bank informed the public that, “the issuing and the acceptance/collection of cheques will cease, effective from 31 December 2020.” At the time, most banks had already begun phasing out this form of payment, with clients making use of cheaper, more convenient electronic payment methods.

Verbal vs. written contracts for conveyancing

According to the Reserve Bank, several challenges associated with the use of cheques in South Africa led to the decision to discontinue them. These included:

  • a lengthy processing period
  • fraud perpetrated through the issuing of cheques
  • cheques as an expensive payment instrument
  • the restricted acceptance of cheques
  • declining usage
  • limited education and protection for the consumer
  • ageing interbank cheque processing infrastructure
  • impact of the coronavirus pandemic (COVID-19) outbreak

(Source: www.gov.za)

Electronic images of cheques issued prior to 31 December 2020 will still be made available to consumers. 

While many millions of South Africans have limited access to cellphones and the internet, and the cost of data is a very real consideration, most areas of the country have ATMs and alternative payment points enabling access to electronic methods of payment.

Anyone needing assistance with electronic payment options or information regarding the discontinuation of cheques is encouraged to approach their bank directly.

Follow Snymans on Facebook for more legal information, tips and news about property.