Maldives Monetary Authority (MMA) has decided to initiate an action plan on reducing the usage of cheques.
The purpose of the action plan is to improve the payment system in the Maldives by reducing the usage of cheques and physical cash and implementing digital payment methods.
MMA finalised the formulation of the action plan in coordination with banks in 2021 and will be initiating the action plan in June. The authority revealed the action plan will continue to 2023, during which it will work on maximising convenient and accessible alternative digital solutions to all customers, imposing a value ceiling on cheques nationwide to USD3,000, and reducing cheque clearing frequency to twice a week. The work also includes migrating all the inter-bank account transfers processed via an automated clearing house (ACH) to an instant payments system (IPS) and introducing fees on cheque transactions in 2023, and reducing the frequency of cheque clearing to once a week in 2024.