BANKS will suspend issuing out of rand cheques and paper payment notes with effect from this month in compliance with a Sadc initiative to introduce electronic payment in regional trade.
Report by Gamma Mudarikiri
Bankers’ Association of Zimbabwe (BAZ) executive director Sijabuliso Biyam told Southern Eye Business that banks, as per Sadc initiative, will from June 30 stop issuing out rand cheques, rand drafts, rand travellers’ cheques among other documents and introduce an electronic payment system.
“Paper payments have long been overtaken by time and Sadc agreed to phase out the system and introduce electronic payment which is more efficient,” he said.
Biyam added that electronic payment would reduce risk associated with fraud and the new development was in line with international standards of trade in settling payments.
He said South Africa had taken the lead to announce the phasing out of the paper payment system in the region hence the monthend deadline to introduce electronic payment when trading using the currency. Banks like Stanbic Zimbabwe have also started issuing out notices advising their clients on the new development.
“Following regional developments, with effect from June 30, we will no longer be accepting or issuing out the following cross-paper payment papers, rand cheques (and) rand travellers’ cheques,” reads part of the notice. South Africa continues to be one of the biggest trading partners with Zimbabwe and BAZ said the introduction of the electronic payment would improve trading efficiency within the two countries.
According to the Zimbabwe Statistics Agency, trade between Zimbabwe and South Africa amounted to about $59 billion in 2012 and is expected to improve this year. The firming of the rand against the US dollar is also expected to ease trading.
