The Venezuelan Banking Association (AVB) issued Circular No. 188, informing that, starting May 1st, the Central Bank will cease processing checks through the electronic clearinghouse (CEE).

According to the AVB, a new system will be established: validation and collection will be done directly at the teller window of the issuing bank. If the person has an account at the same institution, “the payment can be made via direct deposit at the teller window. If they are not a client of the issuing bank, the institution may choose to pay in cash –depending on the amount–, facilitate the opening of an account, or apply other mechanisms.”

Regarding the availability of funds, it will be immediate if the check is deposited into an account at the same bank. “However, if the transaction involves different institutions, the money will be available the next business day.”

The AVB (Venezuelan Banking Association) reported that this new system may involve the collection of fees, depending on the method used.

The change in check cashing is part of the transition to the era of digital payments. This method has been steadily gaining ground. “According to the Banking Association, 99.9 % of transactions in the country are already carried out through digital channels.” Furthermore, “the removal of checks from the clearinghouse reflects their declining relevance in an environment dominated by electronic transfers and digital payments.”

M.Pino

Source: finanzasdigital

(Reference image source: thapanee srisawat on Unsplash)

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