Paying for products and services by cheque will remain an option for customers after plans to abolish them were scrapped.
The Payments Council, which is made up of the major UK banks, has said that cheques will continue for as long as customers need them and the target for possible closure of the cheque clearing in 2018 has been cancelled.
Consumer groups, and MPs, had expressed concern that even though cheques were to remain in place until 2018, there was still no real alternative and that any such move could have a severe impact on many.
Richard North, the chairman of the Payments Council said: "It's in the DNA of the Payments Council to consult and listen to all those people who actually make payments and use cheques.
"Listening to over 600 stakeholder groups, working with the banks and following our appearance before the Treasury Select Committee, we have concluded we should reassure customers that the cheque is staying."
Age UK was particularly vocal in its opposition to the plans, with its own research showing that cheques were important to older people with 73% of them using them as a means of payment.
Michelle Mitchell, charity director at Age UK, said: "We are delighted that the Payments Council has listened to the many people who said how difficult the loss of cheques would be for them. This is a vital first step that will help many older people."
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