The Central Bank of Nigeria (CBN) has further intensified its efforts to stamp-out incidences of ‘bounced cheques’ in transactions in the economy, as the apex bank recently introduced revised guidelines for bank charges, applicable to services offered by financial institutions in the country.
The new guidelines mean that with effect from May 1 2017, the sum of N5,000 flat will be charged on returned cheques with values of N500,000 and below. One per cent penalty will be placed on returned cheques with values that exceed N500,000. The charges will apply to cheques that are returned because drawer’s account (that is the account of the person who issued the cheque) is not properly funded.
The new guideline does not invalidate the provisions of the existing Dud Cheque Act.
The CBN had, in a circular dated 5th July 2013, said that over 167,000 dud cheques valued at N166 billion were processed by Nigerian banks from January to December in 2012, a development it noted greatly subverts its effort to move the economy to a cashless regime.
“The implication of this development is the low confidence generated in the use of financial instruments, which adversely affects the CBN’s ‘Cash-Lite’ policy, aimed at reducing the volume of cash-based transactions and businesses in Nigeria,” the circular had said.
In line with the new guidelines, Guarantee Trust Plc has advised its customers to ensure that their accounts are sufficiently funded to accommodate their cheques, in order to avoid attendant penalties.
“Please be reminded that other banks’ cheques lodged in your account with GTBank will get value at 10 p.m the next business day,” the said in a mailed message to customers on Tuesday.
INNOCENT UNAH
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