From 1st January 2027, new rules governing cheques and bank drafts will take effect in Malta under the updated Central Bank of Malta Directive No. 19.
Whether you issue these payments or receive them, here are the key changes to keep in mind.
€50 minimum amount
Cheques and bank drafts may only be issued for amounts of €50 or more. For smaller payments, an alternative payment method will be needed.
Three-month cheque validity
Cheques will be valid for a maximum of three calendar months from their date of issue, replacing the current six-month period. Recipients should deposit them promptly to avoid missing this shorter window.
Bank drafts will retain their maximum validity of six calendar months.
Deposits replace cash encashment
Cheques and bank drafts must be deposited into the account of the person or organisation named as payee, regardless of their value. They will no longer be exchangeable for cash over the counter.
Why are these changes being introduced?
The Central Bank of Malta explains that the amendments strengthen the framework for paper-based payments while supporting the shift towards safer and more efficient payment methods.
The changes reflect developments in payment practices and technology, with the period before implementation allowing institutions and customers time to adapt.
The Directive covers euro-denominated cheques and bank drafts where the payer, payee and the institutions servicing the payment are all located in Malta.
For businesses and individuals who regularly use these instruments, now is a suitable time to review payment arrangements and prepare for the new requirements.
Read the Central Bank of Malta’s announcement here: https://www.centralbankmalta.org/en/news/14/2026/11359
Joanna Storace
Executive Officer
