Reduction in cheque item value limit

[Dave A]

In my inbox this morning:

Dear Customer

Please take note of the following important information regarding cheques:

1. With effect from the 16th of July 2012, the maximum value for which a cheque can be written will be reduced from R5-million to R500, 000.

After consideration the Banking Industry has decided to reduce the cheque item limit from R 5 million rand to R 500,000.00.

This means that cheques written above the value of R500, 000 after the 16th of July 2012 (the implementation date) will not be processed for value, i.e. the maximum value of a cheque will be no more than R500,000. It is important to note that this is an industry wide initiative and will not be implemented by Standard Bank alone.

[Chrisjan B]

Yeah, everything above R 500 000 will be paid in cash....

[Petrichor]

I guess I won't be able to fill up my tank with cheques anymore... anyway that is what it feels like these days

[Blurock]

#*&@# there goes my trip to Las Vegas!!

[Dave A]

The particular profile that struck my mind was conveyancers that insist their trust accounts must be operated by cheques. This is going to stitch them for sure.

And then the big question - why have a limit on cheque values at all?
Smacks of just being part of the campaign to get rid of cheques completely to me.

[wynn]

So how do I pay for my new 'Merc'?
Walk in with a suitcase of cash?

[Chrisjan B]

So how do I pay for my new 'Merc'?
Walk in with a suitcase of cash?

Nooo, this is the modern age - via EFT from your Samsung Galaxy S3....

[AndyD]

And then the big question - why have a limit on cheque values at all?
Smacks of just being part of the campaign to get rid of cheques completely to me.

Mission creep.
There's no other explanation and their excuse about sercuity problems with big amount cheques is rubbish. If I ever issue a cheque for anything over 20-30K I guarantee you I get at least one phonecall, sometimes two, from the bank to confirm that it's genuine.

[Blurock]

There is so much fraud going on with stolen and washed cheques. It may take up to 3 days for inter- bank cheques to clear. During this time much can happen on an account. This announcement just confirms that the banks are losing the battle and that they do not trust their own systems any more.

[CLIVE-TRIANGLE]

Maybe we should revert to promissory notes and bills receivable. Oh heck, I forgot I'm ancient.

[Chrisjan B]

Maybe we should revert to promissory notes and bills receivable. Oh heck, I forgot I'm ancient.

It works on the TRUST principle which does not exist anymore....
A tragedy...

Anyway we must go forward not backward.