Cheques deadline extended to June

CITIZENS holding onto cheques have been given another six months to visit their nearest financial institutions to present and receive payments.
Acting Bank of Papua New Guinea governor Elizabeth Genia said the National Payments Council (NPC) met on Monday and agreed on an extension to June 30.
Genia, who is the chairman on the council, said the six-month grace period would allow people “in remote locations holding cheques sufficient time to travel to present cheques and receive payment”.
She said the NPC meeting was necessitated following concerns about the proposed cessation of private sector cheques, previously set for next Sunday, raised by Members of Parliament and the public, including the business community.
NPC is made up of representatives from all PNG-licensed financial institutions, and is chaired by the Bank of PNG.
Genia said the council recognised that unbanked citizens and those in the remote areas would have difficulties travelling into towns to exchange cheques for cash.
“Those holding cheque books may require more time to move to alternative forms of payment that comply with the Bills of Exchange Act such as vouchers and private bills of exchange,” she said.
“Such alternative forms of payment could bring greater efficiencies, lower costs and also provide opportunities for local small-to-medium enterprises (SMEs) to facilitate business,” she said in an advertorial.
Commercial banks had also carried out extensive awareness through all information mediums, including the social media, advising customers about the now-available new digital products targeting SMEs as well as individuals.
“New forms of digital identity are being rolled out, which will allow those without full documentation or internet access to confirm their identity and open accounts … comprehensive digital services will allow farmers and businesses to receive funds from agents in trade stores and other service locations at less cost than redeeming cheques,” Genia’s statement said.
She said in time, apart from setting up a help desk for this purpose, BPNG would also carry out researches to determine the pros and cons of these changes, especially for the country’s remote users.