No More Third-Party Cheques From February

I do not like copying from local news organisations, but , I think, Gwen will forgive me in this case. It is important information for everybody in our region and beyond

The chairperson of PAN, Ester Kali, said her organisation, in conjunction with the Bankers' Association of Namibia [BAN] and Bank of Namibia [BoN], decided to discard the further usage of third-party cheque deposits or paper-based credit transfers for any Namibian or South African beneficiary account from February 1 2008.

"We would like to advise the public that in future individuals will be required to hold an account with the financial institution they wish to deposit cheques to and that such funds to other Namibian or South African financial institutions only be transferred electronically after the cheques were cleared," Kali stated.

Third-party cheque deposits are cheque deposits made at one bank for credit to a beneficiary account held at another bank.

This typically occurs in towns where certain commercial banks are not represented, she explained.

In such situations commercial banks will be able to enter into special agreements among themselves to continue facilitating such transactions at the request of customers.

However, third-party deposits involving non-clearing banks such as NamPost Savings Bank will continue to be governed through agreements between a clearing bank and the latter, registered under the auspices of the PAN.

Paper-based credit transfers refer to cheque deposits into beneficiary accounts held by commercial banks in South Africa.

"This involves over-the-counter credit transfer deposit slips.

These deposits are usually done by Namibian customers paying for goods or services rendered by South African service providers whose account is held in the books of a South African commercial bank", Kali said.

Again, in such instances banks are requested to have procedures in place to facilitate such payments through electronic transfers, Kali said, adding that the Bank of Namibia is currently helping commercial banks with such procedures.

Kali urged the people to contact their nearest bank branches to clarify any misconceptions about third-party cheque deposits and paper-based credit transfers.