TO reduce Hong Kong's use of cheques, the Hong Kong Association of Banks (HKAB) will initiate public consultation on the introduction of a giro system similar to that running in some European countries.
A giro system, if implemented and accepted, will drastically change the way people use cheques.
HKAB has commissioned a consultancy to carry out a feasibility study and is eliminating the jargon from the report.
Before the end of September the Consumer Council, utility companies, non-banking institutions and treasury departments will be asked for comments on the scheme.
HKAB secretary Paul Lowndes said: 'Giro will not completely replace cheques but will offer a cheaper alternative for banks and users. It will be a quicker means of effecting payments and reduce the risk in the system.' Giro, an automatic debit transfer system, has been used in Europe for years.
It is a banking arrangement that enables customers to make payments from their accounts by credit transfers.