Central Bank stops banks from issuing cash for cheques of over €5,000 in new set of rules

Central Bank issues new regulation on cheques

File Photo
File Photo

The Central Bank of Malta has announced cheques of over €5,000 will no longer be cashed by banks and will have to be deposited in the individual's account.

The new directives will come into force on 1 January 2022, introducing regulations on the use of cheques and bank drafts.

Should a cheque be issued post-dated, the cheque will be honoured on the day of the receipt, irrespective of the future date.

Cheques below or equal to €20 can no longer be issued, and will be dishonoured if presented at the bank.

It also said cheques exceeding €5,000 which are payable to individuals, should be deposited in the account of the person named on the cheque, and cannot be encashed.

Cheques will remain valid for six months, and facilities will be discontinued for at least two years if, within one year, the client issues six cheques that cannot be paid out.

In a statement it said all cheques should be issued as ‘only’ cheques, meaning they will only be payable to the named person.