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The Central Bank of Nigeria has placed a ban on all individuals and corporate entities found issuing dud cheques, directing banks to enforce immediate restrictions to protect the integrity of the financial system. The directive was issued as part of the bank’s effort to curb rising cases of cheque-related fraud.
According to the CBN, financial institutions must update their internal watchlists and submit the details of offenders to the central fraud database. The regulator said the action is necessary to maintain confidence in cheque payments and ensure accountability among customers who use the instrument for business and personal transactions.
Banks are also required to prevent listed offenders from opening new accounts or accessing certain banking services while the ban is in effect. Industry experts say the move will increase caution among cheque users, reduce disputes, and strengthen the reliability of Nigeria’s payment system.
Analysts note that dud cheque cases often disrupt business transactions, harm credit relationships, and create legal complications for both buyers and sellers. By introducing stricter enforcement, the CBN aims to promote responsible financial behavior and reduce operational risk within the banking sector.
The directive has been welcomed by market observers who believe it could contribute to a more transparent financial environment. However, they stress that successful implementation will depend on strict compliance by all banks and continuous monitoring by regulators.
The CBN added that customers previously penalized for dud cheque transactions may undergo review after demonstrating improved compliance. The regulator said the long-term goal is to create a payment ecosystem built on trust and predictable financial conduct.
According to the CBN, financial institutions must update their internal watchlists and submit the details of offenders to the central fraud database. The regulator said the action is necessary to maintain confidence in cheque payments and ensure accountability among customers who use the instrument for business and personal transactions.
Banks are also required to prevent listed offenders from opening new accounts or accessing certain banking services while the ban is in effect. Industry experts say the move will increase caution among cheque users, reduce disputes, and strengthen the reliability of Nigeria’s payment system.
Analysts note that dud cheque cases often disrupt business transactions, harm credit relationships, and create legal complications for both buyers and sellers. By introducing stricter enforcement, the CBN aims to promote responsible financial behavior and reduce operational risk within the banking sector.
The directive has been welcomed by market observers who believe it could contribute to a more transparent financial environment. However, they stress that successful implementation will depend on strict compliance by all banks and continuous monitoring by regulators.
The CBN added that customers previously penalized for dud cheque transactions may undergo review after demonstrating improved compliance. The regulator said the long-term goal is to create a payment ecosystem built on trust and predictable financial conduct.