Treasury legislation to allow cheques to be presented electronically is entering the House of Keys and is due for formal first reading next Tuesday (November 29, 2016).
The Bills of Exchange (Amendment) Bill mirrors new UK laws and permits the banking system to process a scanned image of a cheque instead of the original paper version.
In time this will enable a faster clearing cycle, meaning businesses and consumers receive their funds more quickly. The payment system for the banking industry will be more efficient and will provide significant cost savings; this will also help future-proof the cheque as a sustainable payment option.
Because of the need to replicate the new UK legislation so that the Isle of Man banking system can continue to interact with its UK counterpart, the Bills of Exchange (Amendment) Bill has not been subject to formal public consultation.
A copy of the Bill and explanatory notes are available for inspection at http://www.tynwald.org.im/business/bills/Pages/default.aspx
The Bill is being taken through the House of Keys by Treasury member Bill Shimmins MHK.