Enforcement of cap on cheque transactions postponed

Maldives Monetary Authority (MMA) headquarters in Male' City. (Sun Photo/Fayaz Moosa)

Maldives Monetary Authority (MMA) has decided to postpone the enforcement of cap on cheque transactions.

In a statement on Thursday – the central bank said that they are undertaking multiple efforts to enhance payment efficiency in the Maldives in addition to encouraging the use of digital payment methods and reducing the usage of cheques and physical cash.

As part of these efforts, MMA, along with banks in Maldives, put together a two-year-long action plan which was publicized last year’s April, with the aim to reduce the usage of cheques.

Some of these steps include setting MVR 50,000 and USD 3,000 as the maximum amount for cheques accepted starting next month.

However, MMA, in their statement, citing lack of adequate preparations by relevant authorities to enforce the action plan, said that the enforcement of cap on cheque transactions planned for next month is postponed.

Bank of Maldives (BML), in accordance with the action plan, announced cap on cheque transactions in last year’s November.

They detailed cheques of higher values would need to be transacted through a digital channel. The value ceiling will be applicable to cheques issued by individuals, businesses and corporates.