The Central Bank of Nigeria (CBN) has directed all banks to compile names of customers who have issued dud cheques at least three times since July 5 to be forwarded to the Economic and Financial Crimes Commission (EFCC) for investigation
CBN said that the circular has became necessary as the actions of dud cheques issuers were beginning to adversely affect the ‘cash-lite’ policy currently at the pilot stage in some states.
The apex bank said dud cheques issuance, which it said is on the increase, results in low confidence in the acceptance of cheques, one of the key elements of the ‘cash-lite’ policy, and advised all banks to warn their customers against issuing bounced cheques.
A statement by one of the banks to its customers said, “We write to inform you of the recent circular issued by the Central Bank of Nigeria (CBN) with reference number FPR/DIR/CIR/GEN/03/005 and dated July 5, 2013. The CBN, through this circular, has directed all banks to advise all customers against issuing dud cheques to third parties, that is issuing cheques against unfunded accounts.
“According to CBN, the volume of dishonored cheques in the financial system is on the increase and has shown no signs of declining. This results in low confidence in the acceptance of cheques and adversely affects the “cash-lite” policy aimed at reducing the volume of cash based transactions in Nigeria.
“As part of efforts to address the issuance of dud cheques, CBN has directed all banks to identify customers who have issued dud cheques on three instances with effect from July 5, 2013. The apex bank asked banks to send details of customers together with copies of dud cheques to it after which it will forward such details to the Economic and Financial Crimes Commission (EFCC) for further investigation.
“Our esteemed customers are therefore advised to make sure that their accounts are funded before issuing a cheque to a third party and to also confirm all cheques via our internet banking platform or Relationship Managers, as this will ensure the cheque is honoured”.