CBN Proposes 5-Year Ban for Repeat Dud Cheque Issuers to Strengthen Financial Discipline

The Central Bank of Nigeria (CBN) has unveiled a draft policy proposing a five-year ban for individuals who repeatedly issue dud cheques. The aim is to enhance financial discipline and protect the cheque clearing system.

The proposed guidelines define serial dud cheque issuers as customers whose cheques bounce three times due to insufficient funds. The draft guidelines also include tougher penalties for repeat offenders, with additional restrictions for those who continue to issue dud cheques.

The CBN directive aims to improve financial security and reduce losses in the banking sector.