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Public Consultation on Proposed Legislative Reforms to Support the Cheque Use Reduction Initiative

The Central Bank of The Bahamas (the Central Bank) advises that a public consultation has commenced regarding proposed legislative and policy reforms aimed at supporting a national transition from heavy reliance on cheques, as part of the Central Bank’s broader strategy to modernize The Bahamas’ payments ecosystem. The Central Bank is committed to fostering monetary stability, promoting a sound financial system, and advancing efficient, modern payment systems across The Bahamas. The cheque use reduction initiative forms part of the Central Bank’s ongoing efforts to support financial inclusion, innovation, and long-term economic development.

The public consultation consists of a consultation paper, entitled Cheque Use Reduction Project, which outlines key recommendations for phased reduction of cheque usage, proposed legislative amendments to facilitate payment-method neutrality, and opportunities for public feedback on policy parameters surrounding the continued use of cheques during the transition period.

1. Key Recommendations Under Consultation

The consultation paper sets out several proposed measures to support the reduction of cheque usage, including:

• Introduction of a cap on cheque item limits relative to the maximum value for which cheques may be written or negotiated;
• Legislative reforms to remove references to cheques as a mandatory or singular form of payment and replace them with flexible, technology-neutral payment provisions;
• Amendments to the Bills of Exchange Act and Payment Systems Act to phase out statutory treatment of cheques and accommodate substituted digital payment instruments; and
• Development of new regulations and policies for non-cheque payment instruments.

The paper also details proposed amendments across various laws including the Employment Act, Supreme Court Act, Partnership Limited Liability Act, Hotel Regulations, Public Trustee Rules, Buildings Regulation Rules, Friendly Societies Act, and Parliamentary Elections Act to modernize payment provisions and enable future innovation.

II. Submission of Comments or Enquiries

The Central Bank invites all industry stakeholders including financial institutions, consumer groups, and members of the public to provide feedback on the consultation paper by 31 January 2026.

The full consultation paper is available on the Central Bank’s website at www.centralbankbahamas.com.

Questions and feedback regarding the public consultation paper should be directed to:

The Cheque Reduction Steering Committee Secretariat

Email: Payments_Unit@centralbankbahamas.com