Public Works and Government Services Canada

Public Works and Government Services Canada

April 11, 2012 14:42 ET

Government of Canada Increasing the Use of Direct Deposit: Security, Reliability and Efficiency

GATINEAU, QUEBEC--(Marketwire - April 11, 2012) - The Government of Canada will increase the use of direct deposit by slowly phasing out federal government cheques by April 2016. Direct deposit is a secure, reliable and cost efficient way to deliver payments to Canadians.

This initiative is expected to save the Canadian government approximately $17.4M per year starting in 2014-15. The cost to produce a cheque is approximately 82¢ while a direct deposit payment costs about 13¢. Cheques will only be issued under exceptional circumstances, for example when Canadians do not have access to a financial institution because they live in a remote location.

"The Government of Canada is committed to using taxpayer dollars wisely," said the Honourable Rona Ambrose, Minister of Public Works and Government Services and Minister for Status of Women. "Increasing the use of direct deposit will contribute significant savings through the reduction in the use of paper and related cheque-printing and delivery costs."

The Receiver General issues over 300 million payments annually, of which close to 77% are already made by direct deposit. Citizens and businesses currently receiving Government of Canada cheques have the next four years to register to receive payments by direct deposit. Enrolment forms can be obtained from the Receiver General web site, or from federal departments responsible for the payment to be received by direct deposit. For any new payment, the first payment method offered will be direct deposit.

This government is modernizing the way we do business and saving taxpayer dollars. This initiative also supports the Government's efforts to achieve its targets as part of the Federal Sustainable Development Strategy by reducing paper consumption and reducing greenhouse gas emissions.

For more information about the Receiver General and to enroll for direct deposit, please visit:

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Contact Information

  • Michelle Bakos
    Office of the Honourable Rona Ambrose

    Media Relations
    Public Works and Government Services Canada