As part of the plan to modernise the payment system and in line with the Government’s Digital Economy Agenda, the use of cheques as a mode of payment will be discontinued in a phased approach as of the 1st January, 2025 for individuals and as of 1st January, 2026 for businesses. Below are a set of frequently asked questions for the initiative.

• 1. Why is the use of cheques being discontinued in Seychelles?
  
  

  The use of cheques is being discontinued in line with the Central Bank of Seychelles (CBS)’ National Payment System Modernisation Plan which aims to promote and encourage the provision and use of digital payment methods. Moreover, cheques are being discontinued in light of the challenges brought by this mode of payment. This firstly ranges from malpractices, whereby cheques are being used as a “credit facility”, in other words writing of cheques without having enough funds in the account is being done despite being against Section 299A (1) of the Penal Code. Secondly, given the challenges emanating from bounced cheques, particularly for the drawee to recover funds, fewer businesses and individuals are willing to accept cheques as a mean of payment.

• 2. When will cheques no longer be available?
  
  

  As approved by the Cabinet of Ministers on September 11, 2024, CBS will be undertaking a phased approach for the sunsetting of local currency cheques are per the following timeline:

  Deliverables	Timeline
  Banks and Seychelles Credit Union (SCU) to stop issuing cheque books	1st January, 2025
  Deadline for banks and SCU to stop accepting cheques	1st May, 2025

  
  
  

  Deliverables	Timeline
  Banks and SCU to stop issuing cheque books for non-individuals	1st January, 2026
  Deadline for banks and SCU to stop accepting cheques for non-individuals	1st May, 2026

  
  
  
• 3. Who are categorised as non-individuals?
  
  

  Non-individuals include any business that holds a business account with a bank or the SCU.

• 4. What other payment options are available in the country for conducting financial transactions?
  
  

  The following digital payment options are available in the country:

  • Debit/ Credit cards for individuals (payment through Point of Sale machine (POS) or online platforms)
  • Cards for businesses (Debit, Credit and business cards) (payment through POS or through e-commerce platforms)
  • Internet banking platforms
  • Mobile banking applications
  • E-Money services
  • QR code payment
  • Automated Teller Machine (ATM)

  Note: Not all the service providers provide the same payment options listed above. Customers are encouraged to contact their respective banks, SCU and other Payment Service Providers to learn more on what is available.

• 5. Can someone still pay me with a cheque?
  
  

  You can receive payment by cheque from an individual as long as it is dated and presented to a commercial bank or SCU before 1^st May 2025.

  You can receive payment by cheque from a non-individual as long as it is dated and presented to a bank or SCU before 1^st May 2026,

• 6. What will I need to do with my cheque books?
  
  

  Clients have the option to either submit all their cheque books to the respective banks and SCU for destruction (please contact your respective banks and SCU for further assistance), or to dispose/destroy their cheques books themselves.

• 7. What are the arrangements being made by the Government to provide alternative payment methods?
  
  

  The Government is in the process of increasing the availability of POS machines at the Ministries, Departments and Agencies (MDAs). Payments to Government can also be done via available digital products and services. These include internet banking platforms, mobile banking apps and QR code payments, amongst others and depending on the service provider.

• 8. I find it quick and easy to pay by cheque. Will digital payment alternatives be as quick and easy?
  
  

  Although making payment by cheque is considered easy and quick, payments through cheques are not guaranteed in view that they serve as a “promise to pay” that is subject to availability of funds when the cheque is cleared. Currently, available digital alternative payment solutions including payment cards, internet banking, mobile payment applications and others do offer close to real time payment solutions with enhanced security features.

• 9. Digital payment solutions come at a cost. What is being done to keep it affordable?
  
  

  All payment instruments have associated costs whether directly or indirectly, and often the indirect costs such as transportation costs and time taken to access physical bank branches, are not taken into consideration. Nonetheless, the positive correlation between the cost and adoption of digital financial solutions is key consideration for continued usage of digital financial services. In that regard, the CBS in collaboration with the Department of Information Communications Technology (DICT) commissioned a study to assess the reliability and affordability of internet services, which is the basis for digital financial solutions. Subsequent to the study, a detailed action plan, including the cost of internet, has been approved by the Cabinet of Ministers. Additionally, there is ongoing engagement with international payment schemes, namely Visa, to reduce the merchant service charge applicable on the payment card transactions that merchants have to incur. Moreover, on an ongoing basis, CBS reviews the fee structures for payment products and services to ensure that applicable fees do not negatively affect the adoption of digital payment solutions. Currently, payments made through the Seychelles Electronic Fund Transfer (SEFT) are at no cost to a customer. CBS continues to engage with relevant stakeholders to make digital payment options more affordable.

  Other than associated costs, focus should also be on the advantages of using digital platforms, such as:

  • Accessibility and convenience. With just a few clicks, individuals can access their bank accounts, make payments, and transfer funds anytime, anywhere (provided they have internet connection). This eliminates the need to visit physical branches or stand in long queues, saving precious time and effort.
  • Enhanced security measures. Banks and financial institutions invest heavily in robust security systems to protect customers' sensitive information. Encryption technologies and multi-factor authentication methods ensure that transactions are safe and secure, giving customers peace of mind.
  • Ability to track and manage finances effectively. Through online platforms or mobile apps, individuals can monitor their account balances, review transaction history, and set up automated payments. This level of transparency and control empowers individuals to make informed financial decisions and maintain better financial health.
  
  
• 10. The main alternative to cheques is cards which carries a high cost to merchants. What is being done in that regard?
  
  

  Reduction of Merchant Service Charge for certain segments (Education, Fuel, Quick Service Restaurants, small retail stores, telecommunication and utilities) was undertaken by the acquirers (i.e. the banks that provide POS machines) in 2022, in collaboration with the CBS and Visa. Continuous engagements will be undertaken with the card schemes (Visa, Mastercard etc.) to identify other segments that can benefit from the reduction.

• 11. Who do I contact if I have a complaint relating to the discontinuation of cheques?
  
  

  You can contact the CBS queries and complaints hotline by dialling 4282000 and selecting option 2 or through email to complaints.mcs@cbs.sc

• 12. Who do I contact for more information on the matter?
  
  

  For more information, please contact CBS on 4282174 or fis@cbs.sc