The Maldives Monetary Authority (MMA) has postponed the implementation of the new cheque depositing limit due to inadequate preparation by relevant authorities.
MMA has not yet disclosed the next date of effect. It was announced earlier that the cheque depositing limitations would be enforced in April 2023.
Last year, the central bank set a limit of MVR 50,000 or USD 3,000 for cheque deposits.
In an effort to limit cash and cheque transactions, MMA said that it was working with local banks to encourage digital payment methods. As part of its action plan, the MMA will also be imposing an additional fee on cheque transactions that exceed the limit.
The MMA believes that placing limits on cheque deposits will reduce complications and make financial transactions more secure.
According to the MMA, the use of cheque transactions has decreased by 60 percent over the last five years. In 2021, local commercial banks cleared only MVR 700,000 in cheque transactions, compared to MVR 1.86 billion in 2017.
Statistics also indicate that state-owned enterprises (SOEs) use cheques more frequently than other businesses or individuals.
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