The CBN has proposed new regulatory guidelines that impose tougher penalties, including a five-year ban for serial offenders, to curb the issuance of dud cheques and strengthen financial discipline.
According to a draft titled Guidelines on the Treatment of Dud Cheques by Banks and Other Financial Institutions in Nigeria, the Central Bank of Nigeria has introduced stricter measures to tackle dud cheque abuses, including a five-year ban for anyone who issues three dishonoured cheques across the banking system.
The document also outlines penalties of ₦1 million to ₦5 million for banks that fail to report dud cheques promptly, notify customers, conduct proper account checks, or cancel unused cheque leaves. It further mandates that banks report dud cheques to the Credit Risk Management System and two licensed credit bureaux within one hour, notify customers within two working days, and retain copies for at least five years.
The guideline, issued under the CBN Act 2007 and BOFIA 2020, aims to tighten compliance, restore trust in cheque transactions, and replace all previous circulars on dud cheque administration.