CBN Proposes Five-Year Ban on Serial Dud Cheque Issuers to Restore Financial Discipline

The Central Bank of Nigeria (CBN) has proposed stricter sanctions, including a five-year ban, for individuals who repeatedly issue dud cheques. The new exposure draft aims to tighten reporting standards and strengthen financial discipline in banks and financial institutions.

The guidelines require banks to report incidents of dud cheques to credit bureaus promptly. Serial offenders will face severe restrictions, including being barred from accessing the clearing system, opening current accounts, or obtaining credit for five years.

The ban can be renewed indefinitely for persistent offenders, aiming to clean up the financial system from repeated offenders.