What replaces cheques in Zambia after 24 June

LUSAKA — The cheque is the payment instrument the Bank of Zambia removes on 24 June 2026, and what replaces it is a three-rail mix of RTGS, ZEFT and mobile money.

The phase-out follows Bank of Zambia Circular 08/2024, signed under Governor Denny Kalyalya, and runs to a hard deadline. For Zambian businesses still paying suppliers, salaries or landlords by cheque, the question is operational — which replacement rail handles which payment — and the answer differs by amount, recipient type and frequency.

Why the Bank of Zambia is ending cheques

The data shows three drivers. The first is fraud: cheques are the most-defrauded payment instrument in Zambia, with industry estimates putting losses in the tens of millions of kwacha annually. The second is settlement speed: a cleared cheque takes three to five working days, while RTGS settles same-day and mobile money settles in seconds. The third is cost: cheque processing is operationally expensive for banks relative to electronic alternatives.

Research from the Bank of Zambia's payment systems directorate shows cheque volumes have been falling year-on-year since 2018, with the steepest decline in the past three years. The data is consistent across business segments. Even sectors that historically relied on cheques — agriculture, construction, small-business payroll — now move most of their value through electronic rails.

Cheques have served the Zambian economy for decades. The decision to phase them out reflects where the payments system already is — electronic, faster and safer.

— Bank of Zambia, Circular 08/2024 on the phase-out of cheque payments

RTGS — for large business payments

The Real-Time Gross Settlement system is the rail Zambian businesses should be using for payments above roughly K100,000. RTGS is operated by the Bank of Zambia and accessed through commercial banks' corporate banking channels. The data shows same-day settlement, with cut-offs around 14:30 on most working days. Fees are typically K100-K300 per transaction depending on the bank.

What this means in practice: supplier payments, large rent payments, equipment purchases and inter-company transfers all sit on RTGS. The settlement-finality character of RTGS — once it clears, it cannot be reversed — is the closest functional substitute for a banker's cheque.

ZEFT — for batched routine flows

The Zambia Electronic Funds Transfer (ZEFT) system handles batched, lower-value flows. Payroll, multi-supplier batched payments and recurring household transfers fit ZEFT. Settlement is typically next-business-day, fees are lower than RTGS, and the system is accessible through retail banking channels on most commercial banks.

Mobile money — for everything small

Airtel Money, MTN Mobile Money and Zamtel Kwacha process the bulk of small-value Zambian payments. The data shows mobile money handles more transaction volume than the formal banking system in any given month. Settlement is instant, fees are percentage-based and the rail is reachable on USSD even without a smartphone.

Frequently Asked Questions

These are the questions Zambian businesses and households have been asking about the cheque phase-out. Short answers follow, drawn from Bank of Zambia Circular 08/2024 and the central bank's published payment systems data.

What is the Bank of Zambia Circular 08/2024?

In short, Circular 08/2024 is the regulatory instrument that ends cheque processing in the Zambian banking system. The answer is that it gives commercial banks a phased timeline to wind down cheque clearing, with the final stop date 24 June 2026. The key is that after that date, no Zambian commercial bank will accept or clear a cheque.

How does RTGS work?

Simply put, RTGS is the Real-Time Gross Settlement system the Bank of Zambia operates for large-value payments. Research from the central bank shows it settles same-day and is final once cleared. Data from commercial banks shows fees in the K100-K300 range per transaction.

Why is the Bank of Zambia ending cheques?

The answer is fraud, speed and cost. In other words, cheques are the most-defrauded instrument in the Zambian system, settle the slowest and cost banks the most to process. Analysis from the Bank of Zambia's payment systems directorate shows the modernisation case is overwhelming.

What happens to post-dated cheques?

The key is timing. According to BoZ guidance, any cheque presented before 24 June 2026 will be processed under existing rules. Evidence from the circular shows post-dated cheques with presentment dates after 24 June will not clear and should be replaced with electronic standing instructions.

Who is most affected?

Analysis of cheque usage shows SMEs, landlords, agricultural buyers and informal-payroll operations are the heaviest remaining users. Research from the Bank of Zambia demonstrates the affected base is finite and shrinking. The transition cost is real but bounded — the alternatives already exist and are mature.

Sources

Bank of Zambia: Circular 08/2024 and payment systems data. Kwacha News earlier coverage: Bank of Zambia ends cheque payments from 24 June 2026. Bank of Zambia payment systems directorate.