A steering committee has been developed by The Central Bank of The Bahamas (CBOB) comprised of industry stakeholders to assess the range of issues involved in the elimination of checks in The Bahamas.

CBOB announced in December 2021 that it was working toward the strategic elimination of checks by December 2024.

"Earlier this year the Central Bank established a steering committee of industry stakeholders to the banks, the insurance (sector), credit unions, and representation from the government and the chamber of commerce, and collectively this steering committee is going to be looking at the range of issues surrounding reducing reliance and usage of checks, and also the ease of business issues where there needs to be some measured progress in the financial sector," Central Bank Governor John Rolle said during a quarterly media briefing earlier this week.

"So looking at those issues and the public education process, that steering committee is going to help guide the Central Bank and the commercial banks in terms of assessing the 2024 timeline, as well as the feasibility of the adjustments to that timeline."

That work, Rolle said, should be completed before the second half of 2023, with an education campaign being set in motion also through the second half of this year.

"The education campaign is not about persuading anyone that we need to get rid of checks. What we're focused on is educating the public to the accessibility and how they should use those accessible means of conducting payments," he said.

"So an understanding that if those means are digital, and if there are concerns around the safety and reliability, et cetera; and understanding how they have been addressed or are being addressed in the financial sector. So really getting people to understand that the environment already allows those of us who elect to do so to function efficiently and effectively without checks, and to get much more the public to embrace the idea of using digital channels."

Earlier this year, Rolle admitted that more work needed to be done to ensure local banks are able to settle digital transactions faster, with better cost efficiency and in greater numbers, before it moves to completely eliminate checks.

Last week, as he lamented the state of banking services in The Bahamas, Fox Hill Member of Parliament Fred Mitchell questioned why there was a push to eliminate yet another banking service.

"I'm sorry to use this expression, but I consider it a fool's errand to be hiring a consultant for two years as I understand it, to convince us why we shouldn't be writing checks. Because I gather the next thing on the chopping blocks is checks, we are supposed to stop writing checks. The technology exists right now in the United States - my sister shows me how she does it - you get a check, you take your phone, take a picture, it goes to your bank, and instant money into your account," he said.

"Or you walk up to the ATM, insert the check, instant money into your account. So why would we be talking about we will stop writing checks, or we're going to ban the writing of checks? And then to hire a consultant over two years to teach us why we should not be writing checks, it doesn't make any sense to me. It costs now $10 to put your own money into the bank and the services just seem to deteriorate."

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