Malawi to phase out cheques as banks shift to digital payments

The Reserve Bank of Malawi (RBM), in conjunction with the Bankers Association of Malawi (BAM), has announced plans to phase out cheques as a payment instrument in Malawi.

Banks will no longer issue new cheque books as the country moves towards electronic and digital payment methods.

However, cheques presented for clearing on or before September 29, 2026 may continue to be processed by banks until March 11, 2027.

After March 11, 2027, banks will no longer be permitted to process cheques.

The development follows the publication of the Bills of Exchange (Amendment) Act, 2026 on September 11, 2026, which provides for the cessation of the issuance and use of cheques in Malawi.

In a joint public notice, RBM Governor Dr George Partridge and BAM Chief Executive Officer Lyness Nkungula said the move is part of efforts to promote safer, faster and more efficient electronic payment methods.

The two institutions have urged bank customers to adopt alternative payment channels, including internet banking, mobile banking, electronic funds transfers (EFTs), payment cards and mobile money services.

Customers have also been encouraged to use other approved digital payment solutions offered by banks and licensed payment service providers.

The phased withdrawal of cheques marks a significant shift in Malawi’s payment system as financial institutions increasingly promote electronic alternatives.