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The primary reason for reducing Cheques is to address risks within the Cheques
payment system. There is still a significant amount of fraud committed using
Cheques. The limit decrease is a concerted industry effort to address fraud. There
are many different electronic alternatives (see point 5 below). These alternatives are
also more efficient for the payment system. The fraud losses experienced for values
above R500 000 are disproportionately high when compared to those below that
level.
3. What will the new limit be and by when will this limit apply?
The current item limit for Cheques is R5 m and will be reduced to R500 000. This
means that Cheques above this value will no longer be accepted and processed. The
limit will come into effect from the 16 July 2012.