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Regulating Cheques and Bank Drafts

Dear Business Owner,

The Malta Chamber of SMEs in collaboration with the Central Bank of Malta organised a webinar about the recent regulation that establishes new rules on the use of cheques and bank drafts.

During this webinar with over 120 participants, we delved deeper into the regulation which comes into force on the 1st of January 2022.

Below we're providing a brief summary of this webinar:



This Directive aims to minimise  risks associated with such instruments; and shift consumers’ behaviour towards more efficient and traceable electronic payment instruments.

This Directive applies to:

  • Local Credit and Financial Institutions
  • CBM when acting as a PSP
  • Natural and Legal persons

Paper-based instruments are to be considered as “Only” cheques meaning that such instruments are non-transferable and can only be negotiated by a Payment Service Provider. 

If during the preceding 12 calendar months, 6 instruments presented for clearing but could not be paid out, the drawee institution is obliged to discontinue providing cheque issuance facilities to drawers for these instruments.


  • The validity period of cheques remain 6 months
  • A minimum amount of €20 for paper-based instruments - instruments equal to or below such limit will not be honoured by the PSPs
  • A maximum amount of €5,000 for which paper-based instruments can be encashed - instruments exceeding such amount shall be deposited in the beneficiary’s account.
  • Cheques/Bank drafts payable to legal persons shall only be deposited and not encashed.


Administrative penalties
If PSPs and/or PSUs do not comply with a requirement contained in this Directive.

Penalties imposed on PSUs:

  • Shall not exceed €200; and
  • May be for each issued instrument contravening this Directive.
02/12/2021 malta chamber of smes
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