MMA to initiate action plan to reduce cheque usage

Maldives Monetary Authority (MMA) on Thursday announced initiating an action plan to cut down the usage of cheques.

According to the announcement made by MMA, the authority, along with banks in Maldives, has put together a two-year-long action plan for 2021 and will initiate it this year in June. The target of this plan is a maximum reduction in the usage of cheques in payments by June 2024.

MMA noted that extensive discussions were held with banks to determine steps that can be taken over different stages to achieve the targets of the action plan.

MMA initiates Action Plan on Reducing the Usage of Cheques.
Press release: https://t.co/jcTzPU0J8y#DigitalBadhalakah pic.twitter.com/fPmcoxCue4

— MMA (@MMA_Maldives) April 7, 2022

Some of these steps include setting MVR 50,000 and USD 3,000 as the maximum amount for cheques from the third quarter of 2023, cutting down the number of days check clearance services are provided, and even introducing a fee for check clearance in 2023. 

Moreover, MMA stated that banks have been informed to provide convenient digital options for customers - including both individuals and businesses and to create awareness of using these digital methods.

In addition to this, the authority highlighted that the steps taken to reduce cheque usage in government institutions, state companies and banks have produced significant results.

The statement further said that MMA and banks will be informing the public of steps that will be taken to carry out the action plan.