No More Government Cheques

April 12, 2012 Updated: April 12, 2012

While the government is planning to cut pay cheques to many of its employees, it is also planning to stop cutting cheques all together.

On Wednesday, Ottawa announced plans to gradually replace government cheques with direct deposits, a move estimated to save around $17.4 million a year starting in 2014-15.

While it costs the government 82¢ to cut a cheque, direct deposit payments cost about 13¢.

Almost 77 percent of the 300 million payments the Receiver General issues are already made through direct deposit. Citizens and businesses will have the next four years to register a direct deposit account, though a cheque can still be issued in exceptional circumstances.