The Central Bank of Nigeria (CBN) has announced new penalties for banks and cheque printers that fail to follow cheque standards, declaring that offenders could face fines of up to ₦20 million.
The new rules were shared in a circular sent on Thursday to deposit money banks (DMBs), cheque printers, and personalisers, according to a circular signed by CBN Director of Banking Services Department, Hamisu Abdullahi, dated February 10.
Titled ‘Revised Sanctions on Defaulters of the Nigeria Cheque Standard and Nigeria Cheque Printers’ Accreditation Scheme 2.0’, CBN said the review is meant to improve the cheque clearing system and update enforcement measures.
“Please recall that the Central Bank of Nigeria issued a circular on sanctions to defaulters of the Nigerian Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS) in 2019.
“In furtherance of the Bank’s commitment to increase the efficiency and safety of the Nigeria Clearing System, it has become imperative to review the aforementioned sanction grid to reflect the current realities in the banking industry,” CBN stated.
It said under the new rules, banks that use unaccredited cheque printers will be fined N10 million, and the affected cheques will be withdrawn.
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It added that if the offence happens again, the bank will pay ₦20 million, and the cheques will still be withdrawn.
The apex bank warned that banks that fail to submit personalised cheque samples for testing will pay a ₦5 million fine.
There are also stricter penalties for not meeting encoding, security, and quality standards. The minimum fine is N10,000 per cheque.
It stressed that cheque printers and personalisers who add security features without approval will pay N10 million per feature, and that the fine will be shared equally between the bank and the printer.
“Failure to produce or personalise cheques in conformity with approved standards will attract reprinting at the offender’s cost and a ₦10 million fine, while repeat violations will draw a ₦20 million penalty,” CBN stated.
According to the apex bank, cheque printers that subcontract more than 50 per cent of a job outside approved arrangements may face a ₦20 million fine, stressing that repeat offences could lead to loss of accreditation.
On regulatory compliance, CBN stated that cheque printers that do not respond to official queries within seven days after a warning will pay a N1 million daily fine.
“Suspension of Accreditation for a minimum period of three months in the event of continuous default exceeding 21 days after the initial warning.
“Commercial banks that fail to validate MICR data at the point of truncation face a minimum penalty of ₦10,000 per instrument,” CBN said.
The CBN also warned that using unapproved watermarked paper will lead to the withdrawal of the affected cheques and a ₦20 million fine, stressing further that repeat offences may result in loss of accreditation.
The regulator added that the new sanctions take effect immediately and directed all stakeholders to comply.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
