Malawi’s Parliament has enacted the Payment Systems Amendment Bill, establishing the legal framework required to eliminate paper cheques from the national financial ecosystem.

According to Finance Minister Joseph Mwanamvekha, the legislative update aligns national banking laws with ongoing fiscal reforms intended to stabilize and modernise the economy.

Correspondent George Mhango reports that the move is directly linked to the country’s MW2063 vision, which prioritises national digitalisation and public sector modernisation.

The transition addresses longstanding security vulnerabilities within the paper transaction system. Official accounts had increasingly fallen victim to cheque forgery, altered payment amounts, and compromised security protocols within government departments and private institutions.

Furthermore, regulatory authorities identified paper-based clearing mechanisms as a channel contributing to illicit foreign exchange flight. By transitioning entirely to digital settlement systems, financial regulators aim to improve real-time transaction tracking, reduce clearing windows, and strengthen oversight over capital outflows.

Under the new regulatory structure, public and private sector payments will migrate exclusively to real-time electronic fund transfers and digital banking infrastructure.

–ChannelAfrica–