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Measures to encourage alternative payment methods to cheques

The Central Bank of Malta has launched a  public consultation on the proposal to introduce a number of amendments to CBM Directive No. 19 to encourage the use of alternative payment methods to cheques, in line with evolving payment trends and recent regulatory developments. These changes aim to promote the adoption of instant credit transfers as a faster, safer and a more cost-effective alternative. Key measures include shortening the validity period of cheques and bank drafts from six to three months, prohibiting cheque encashments, and increasing the minimum cheque issuance threshold from €20 to €50. Additionally, the Bank proposes that funds from cheques deposited at the drawee institution or issued by the Central Bank be made available by the end of the next business day, or instantly if the cheque is presented at the counter.

Complementing these proposed changes, the Bank is also encouraging recalibration of payment charges by local institutions to ensure that instant credit transfers are accessible and affordable. Furthermore, stakeholders are being invited to provide feedback on the potential implementation of a national mobile proxy look-up service, which would simplify the initiation of payments. These proposals reflect the Bank's ongoing commitment to modernising Malta's payments landscape while ensuring that the transition away from cheques is smooth and inclusive for all users.

Key stakeholders are being invited to provide feedback to this public consultation via  email by 19 December 2025.