About 9,000 more people will be receiving their welfare benefits directly into their bank account following a campaign by the Central Bank of Malta and the Social Security Department.

Beneficiaries who do not have direct credit arrangements receive a cheque drawn on the Central Bank, with over three-quarters of a million such cheques being issued every year. The benefits range from pensions to children’s allowances. However, when the health authorities encouraged people to stay indoors due to the COVID-19 outbreak, the Central Bank issued a directive to make it easier for such cheques to be deposited without having to go to a bank branch or financial service provider in person.

The directive allowed the ‘payee only’ cheques to be deposited by trusted third parties, however, explanatory videos issued by the Central Bank also promoted the concept of switching to direct credits.

The Central Bank said that about 9,000 out of the 33,000 who received cheques in March and April took up this suggestion. This, it explained, means that almost 90 per cent of beneficiaries are now receiving their payments directly into their bank account, up from 82 per cent pre-COVID-19

“We are already receiving reports from stakeholders that the use of cash in retail transactions has declined, with more use of electronic means of payment and a sharp uptake of the use of direct debits and credits,” the Chief Officer for Banking Operations at the Central Bank, Jesmond Gatt, said.

The Permanent Secretary at the Ministry for the Family, Children's Rights and Social Solidarity, Mark Musù, welcomed the new trend, noting that direct credits were a more efficient and safe way of receiving payments.

“We were pleased with the results so far but intend to continue to encourage people to switch as it is so much more convenient for them. My target is to reach 95 per cent by end of this year,” he said.

To sign up for direct credit, one can go to the Social Security Department website at socialsecurity.gov.mt and click on MyServices. Alternatively, one can contact the department on 2590 3000 or via email at [email protected].