Bank of Ireland is on a mission to promote electronic wages payments because these changes are essential, a bank spokesman said.
Mr David Holden said Bank of Ireland's policy was in line with the Government's stated policy to move towards a universal electronic payments system.
The bank was responding to criticism from SIPTU of its decision to stop cashing pay cheques for public-sector employees. Bank of Ireland introduced restrictions on the cashing of cheques in November 2000.
This week some public-sector employees who are paid by cheque, including local authority employees, found themselves unable to cash their pay cheques at Bank of Ireland branches.
Since last November any crossed cheques, any cheques drawn at other Bank of Ireland branches and other banks and any third-party cheques have had to be lodged in full to an account. It is still possible to cash personal cheques with a cheque guarantee card, social welfare cheques, health board cheques and children's allowance over the counter.
Mr Holden said the bank's restrictions were not driven primarily by self-interest. "Most people who are paid by cheque can opt for electronic payment, and we have been encouraging employers to make that switch. Meanwhile we are investing in a whole range of vastly more convenient banking channels, and something has to go."