By Rahim Abdul
Malawians are entering a new era of banking as the country phases out cheque payments, with banks now turning customers towards electronic alternatives such as mobile banking, internet banking and electronic funds transfers.
The Reserve Bank of Malawi (RBM), in collaboration with the Bankers Association of Malawi (BAM), has recently announced the transition in a joint public notice signed by RBM Governor George Partridge and BAM Chief Executive Officer (CEO) Lyness Nkungula.
The two institutions say the move is intended to strengthen electronic payment systems that offer faster, safer and more efficient ways of conducting financial transactions.
Under the new arrangement, banks will no longer issue new cheque books to customers as Malawi moves away from cheque-based payments.
However, the transition will not immediately affect all existing cheques.
Cheques issued and presented for processing before 29 September 2026 will continue to be processed by banks until 11 March 2027.
The RBM and BAM say the change follows the publication of the Bills of Exchange (Amendment) Act, 2026, on 11 September 2026.
The amended legislation provides for the eventual discontinuation of the issuance and use of cheques as a payment instrument in Malawi.
The banking authorities have therefore urged individuals, businesses and other cheque users to start adopting alternative payment methods ahead of the end of the transition period.
Among the alternatives being promoted are internet banking, mobile banking and Electronic Funds Transfers (EFTs), which enable customers to transfer money electronically between bank accounts.
Customers can also use payment cards, mobile money and other approved electronic payment platforms to make payments and transfer funds.
The RBM and BAM have encouraged members of the public and businesses to familiarise themselves with the available alternatives to ensure a smooth transition.
The development marks a significant shift in Malawi’s payment landscape, as financial institutions increasingly move towards electronic transactions and away from traditional paper-based payment methods.
