By By Elizabeth Ugbo
The Central Bank of Nigeria (CBN) has fined commercial banks N10 million and ordered the withdrawal of cheques for using unaccredited cheque printers or personalisers, in a move aimed at enforcing compliance with the Nigeria Cheque Standard (NCS) and Nigeria Cheque Printers’ Accreditation Scheme (NICPAS). The sanctions apply across Nigeria immediately and target banks that fail to meet mandatory security, quality, and accreditation standards, reinforcing the apex bank’s commitment to safer and more efficient cheque clearing.
Revised Sanctions for Banks and Printers
The circular, signed by Mr. Hamisu Abdullahi, Director of Banking Services Department, specifies penalties for banks and cheque personalisers:
- Use of Unaccredited Cheque Printers/Personalisers:
- First offence: Withdrawal of cheques and N10 million fine.
- Repeat offence: Withdrawal of cheques and N20 million fine.
- Failure to Submit Personalized Cheque Samples:
- Attracts N5 million fine.
- Improper Encoding or Breach of Security Standards:
- Fine of N10,000 per instrument.
Background and Purpose
The CBN initially issued sanctions on NCS and NICPAS defaulters in 2019. The updated sanctions reflect the current realities of the banking industry and strengthen the apex bank’s efforts to maintain cheque security, accuracy, and operational efficiency.
Banks and accredited cheque printers are urged to adhere strictly to these regulations to avoid fines and cheque withdrawals.
Expected Impact
These measures ensure that banks maintain proper accreditation, security standards, and quality checks in cheque issuance. They also demonstrate the CBN’s commitment to a modern, reliable, and fraud-resistant clearing system.
