
The Digest:
The Central Bank of Nigeria has introduced a stringent new policy to curb the issuance of dud cheques, proposing an automatic five-year banking ban for repeat offenders. The draft guidelines, now open for public comment, aim to restore discipline and confidence in the use of cheques as a financial instrument.
Key Points:
- Customers who issue three dud cheques will be classified as serial offenders.
- Repeat offenders face an automatic five-year ban from the clearing system.
- Banks must report dishonoured cheques to credit bureaus within one hour.
- The ban applies to opening new current accounts and accessing credit facilities.
- Subsequent offences after a ban will trigger a fresh five-year penalty.
- Banks face fines up to ₦5 million for non-compliance with reporting rules.
- The policy aims to protect the payment system and strengthen financial discipline.
Sources: Nairametrics, The Cable