Sort Code and MICR Reject Flag - CBN Issues Circular On The Revised NCS And NICPAS

Tuesday, November 13, 2018 / 12:18 PM / CBN

Kindly refer to the CBN circular of September 18^th, 2018, where the Bank communicated the approval of the second edition of the Nigerian Cheque Standard (NCS) and Nigerian Cheque Printers Accreditation Scheme (NICPAS), and the subsequent implementation guidelines. 

In furtherance of the Bank’s effort to increase efficiency and safety in the Clearing system, the Bank hereby notifies all stakeholders that the Nigerian Cheque Standard (NCS) and Nigerian Cheque Printers Accreditation Scheme (NICPAS), aka Green Book Version 2.0, will be implemented using the unique State Codes stipulated as the components of the Sort code on cheque instruments. 

In view of this, all Deposit Money Banks (DMBs) should note that Sort Code of their branches in different States must carry the same state Code as their geographic locations (State). DMBs are hereby directed to conform to the State Code provided in this circular and ensure compliance. Consequently, Banks with Branches within a State but continue to use State Code for a different State shall be sanctioned. 

In addition, all DMBs are mandatorily required to activate the MICR reject/repair flag on their Clearing system, for accurate cheque rejects/repair statistics report and good decision making for the industry. 

Kindly note that, the Central Bank of Nigeria, in collaboration with the MICR Technical Implementation Committee will monitor compliance with the requirements of this circular.

Alignment of State Code To Geographic Location (State)

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