During 2021, The Gibraltar Bankers’ Association (GBA), following consultation with its members, agreed to commence a process of consultation for the elimination of cheques from the banking system. In line with this approach, the GBA have consulted with the Financial Services Commission and The Gibraltar Government through The Ministry of Financial Services. Following this, the GBA decided to commission a consultation paper which sought the views of key stakeholders and representative bodies.
Over the years, the use of cheques has reduced significantly and today most consumers as well as businesses use electronic means or cards as the preferred and more secure form of payment. The lockdowns during COVID evidenced that remaining users of physical forms of payment were able to quickly adapt to these type of electronic means. The GBA acknowledge that there will remain a small minority of consumers who would prefer or feel more comfortable continuing to use paper based transactions however the small volumes means it is no longer viable for Banks to support the outdated systems required to support the provision and clearing of cheques. As a result, it is intended that cheques will no longer be accepted by Banks with effect from the 31st December 2023.
With a generous lead in time, Banks will work with those more vulnerable or exposed to this change to ensure they are supported in the transition.