Fenesi.com Entrepreneurship Blog
Related Articles
Have you replaced your old cheque book for your business in Kenya?
As I was travelling to Westlands with a friend, I was reminded by her about the cheque truncation deadline in which i had completely forgotten. Taking into consideration that i had recently written some cheques in which i was to give to my suppliers. I realise that I have 3 days to go to comply or I would be highly inconvenience by the consequences that will follow.
Lack of Compliance
If the scheduled Cheque Truncation System takes effect from Monday the 15th of August customers who present old cheques will have to wait 21 days for their cheque to clear and in the process incur heavy monetary penalties.
Customers whom have bank accounts that has a cheque book are required to replace it before August 15, 2011. Customers or businesses whom transact old cheques after 15th august will have to wait for 21 days for the cheque to be processed and cleared, but that’s not all there will be huge penalties as well.
These are some of the measures that has been put in place for quick implementation of the system and adoptiong to the new generation cheque by the customers.
In 3 days time, the New cheque payment system will take effect and start being operational. The system was to be launched on June 1, 2011 but that didn’t happen due to poor compliance from the industry players at the same time printing issues arised when it came to having enought CTS compliant cheques.
Benefits of the Cheque Truncation
According to Press Release by CBK & Kenya Bankers Association, it is expected that when the system goes live and the whole country will benefit from;
– Efficient and streamlined clearing process for cheque payment and reduction of the cheque clearing days.
– Reduced costs associated with handling physical cheques.
– Shorter clearing cycle facilitating early access to funds by cheque beneficiaries: part of payments and clearing system’s efficiency.
– Reduction of risks associated with manual and longer cheque clearing cycle and quick detection of fraud.
– On the go live date, the whole country will be on one clearing zone at three cheque clearing days (T+3) and this is expected to gradually reduce to one day cheque clearing (T+1).
Press Release pointed out that the Banks have already started replacing old cheques with new Cheque Truncation System compliant cheques. The public is hereby requested to visit their banks to familiarize themselves with the new cheque designs and surrender unused cheque books of old design in their possession in order to be issued with Cheque Truncation System compliant cheques.
Knowing Kenyans, as am one of them, we are last minute people. You’ll see long queues outside banks on the deadline trying to get the new cheque book. Replace your old cheque today to avoid being inconvenienced
Have you replaced your old cheque book for both personal and business?
