Maldives Monetary Authority (MMA) has announced its action plan on reducing the usage of bank checks to promote and foster digital payment alternatives.
According to the central bank, it aims to reduce usage of cash and bank checks in transactions while subsequently increasing the usage of digital or online payment mediums by 2024.
Furthermore, the bank notified that it aims to limit highest transactional amount through bank checks to MVR50,000 - USD3,000 if transactions are carried in US Dollars.
This will reportedly become effective from the second quarter of 2023.
In addition to this, the authority aims to reduce check clearing service days through two phases.
As such, MMA will facilitate check clearing services twice every week effective from the second quarter of 2023, and will be further reduced to once every week effective from first quarter of 2024.
All automated clearing house (ACH) based interbank account transfer transactions of Maldivian currency will be shifted to the instant payment system.
The instant payment system is expected to become operational from the third quarter of 2023.
In addition to this, in order to promote digital transactions and payments, a check processing fee will be introduced by the final quarter of 2023.