What happens when you issue a Dud Cheque

Regulators
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Wednesday, June 01, 2016 5.32 AM / Public Information  

The Central Bank of Nigeria (CBN) policy on dud cheques mandates all banks to advise their Individual and Corporate account holders to refrain from issuing Dishonoured (Dud) cheques i.e. issuing a cheque against an unfunded account. 

The CBN has imposed additional regulatory measures/sanctions against Dud cheque issuers, therefore all Banks are required to: 

1.       Recall/cancel all unused cheque books issued to serial issuers of Dud cheques.

2.      Bar affected customers from using the clearing system for a period of (5) years.

3.    Forward the names of Dud Cheque Offenders to the three private Credit Bureaux and the Credit Risk Management System (CRMS). Details of such clients will be listed on the Private Credit Bureaux and the Credit Risk Management System (CRMS) database for a five (5) year period.

4.   If the offender is found wanting after the 5 year period, they shall be reinstated permanently in the Private Credit Bureaux and the Credit Risk Management System (CRMS) database.

5.   Bar the serial issuers of Dud cheques from accessing credit facilities from the Banking system for a period of 5 years.

6.  Perform status check on all potential customers from CRMS and at least two (2) Credit Bureaux before on-boarding them. 

Before issuing a cheque, Individual and Corporate account holders are adviced to please do the following: 

1.      Ensure your account is funded by confirming your details through any of our e-channels (Internet Banking, Sterling Mobile Money, ATM services) or dial *822*6*NUBAN#.

2.    Confirm your cheques through your Relationship Manager to guarantee the instruments are duly processed.

 

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