New rules on bounced cheques

IN the ongoing process of aligning Namibian banks with internationally acceptable practices and to combat cheque fraud, the Bank of Namibia (BoN) and the Bankers’ Association of Namibia (BAN) will no longer accept any previously deposited or unpaid cheques from June 15 2005.

In a press statement released last week, the central bank and BAN said the cheque clearing rules had been amended accordingly. A previously deposited or unpaid cheque is one that has been deposited in a bank, has been stamped by the bank and has subsequently been referred back to the depositor for various reasons.If a cheque is returned to a depositor from the BoN or a Namibian commercial bank, the depositor will be required to obtain a new cheque from the drawer before depositing it at a bank.The bank will stamp the cheque “Cannot be re-deposited” before returning it to the depositor.”The Namibian public is advised to take note of this change and to apply this ruling to all Namibian and South African cheques issued to Namibian beneficiaries and deposited at the Bank of Namibia or at Namibian banking institutions,” read the statement.According to the BoN and BAN, all Namibian banks will introduce the new rules.A previously deposited or unpaid cheque is one that has been deposited in a bank, has been stamped by the bank and has subsequently been referred back to the depositor for various reasons.If a cheque is returned to a depositor from the BoN or a Namibian commercial bank, the depositor will be required to obtain a new cheque from the drawer before depositing it at a bank.The bank will stamp the cheque “Cannot be re-deposited” before returning it to the depositor.”The Namibian public is advised to take note of this change and to apply this ruling to all Namibian and South African cheques issued to Namibian beneficiaries and deposited at the Bank of Namibia or at Namibian banking institutions,” read the statement.According to the BoN and BAN, all Namibian banks will introduce the new rules.