Editorial

16:42 JST, April 14, 2025

Promissory notes and checks, which have been widely used as a means of corporate payment, are set to be abolished.

The government and financial institutions should strive to prevent their abolition from causing cash flow problems for small and midsize companies, while also working to promote digitalization at those businesses.

The Japanese Bankers Association has decided to end the operation of the electronic clearing house system, which is used for payments with promissory notes and checks, at the end of fiscal 2026. This means that the system of promissory notes, which has continued since the Meiji era (1868-1912), is effectively heading toward complete elimination.

Transactions using promissory notes utilize a system in which large and midsize companies — the ordering party — make payments to small........

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