#JustIn: Debit orders in CMA not possible from month-end
From the end of this month, clients of commercial banks in Namibia will no longer be able to use debit orders to settle the affairs in South Africa.
Equally, debit order deductions by Namibian banks from South African accounts will also no longer be possible.
This follows new cross-border payment regulations in Namibia, South Africa, Lesotho and Eswatini, known as the Common Monetary Area (CMA), which will become effective on 30 September.
Alternative payment methods suggested by the Bank of Namibia (BoN) include making direct payments, stop orders or scheduled payments.
“Clients are urged to find alternative ways of making cross-border payments to insurance companies or other entities where they have signed mandates to be deducted on a monthly basis,” the BoN said.
Clients should contact their respective banking institutions to make the relevant payment arrangements, the central bank added.
Equally, debit order deductions by Namibian banks from South African accounts will also no longer be possible.
This follows new cross-border payment regulations in Namibia, South Africa, Lesotho and Eswatini, known as the Common Monetary Area (CMA), which will become effective on 30 September.
Alternative payment methods suggested by the Bank of Namibia (BoN) include making direct payments, stop orders or scheduled payments.
“Clients are urged to find alternative ways of making cross-border payments to insurance companies or other entities where they have signed mandates to be deducted on a monthly basis,” the BoN said.
Clients should contact their respective banking institutions to make the relevant payment arrangements, the central bank added.
