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Tag: Cheque

  • Nigerian banks migrate to new cheque standards, to reject old ones from December 31

    Nigerian banks migrate to new cheque standards, to reject old ones from December 31

    Nigerian banks are migrating in the New Year (2021), into brand new cheque standards, on the order of the Central Bank of Nigeria (CBN).

    The banks have in an official mail notification to their various customers said they will not accept the old cheques from December 31, 2020.

    The new cheques come with unique features.

    They have expiry dates and also have cheque digit included on the MICR code line.

    The CBN has been working on moving to the new standard since 2018.

    According to a 9 December circular sent to all deposit money banks, accredited cheque printers and Nigeria Interbank Settlement System [NIBSS], only new cheques will be allowed in the clearing system from I January.

    The circular was signed by Sam C. Okojere, director Banking Services Department.

    The circular, however, gave some banks, which are unable to meet the 31 December switchover three months of grace, to comply.

    This will be allowed, if reasons for non-compliance were found to be satisfactory by the CBN management.

    But the CBN said it will embark on a full enforcement of the new cheque standards by 1 April, 2021.

  • CBN lifts suspension of cheque clearing in Nigeria

    The Central Bank of Nigeria has lifted the temporary suspension placed on cheque clearing in the country with effect from Tuesday, April 28, 2020.

    This was disclosed in a circular issued by the apex Bank and obtained by TheNEwsGuru(TNG).

    In the circular, which was signed by the Director, Banking Services Department, Sam Okojere, the apex bank explained that in furtherance of its effort in the development of a safe and efficient payment system in the country, it has lifted the suspension.

    In collaboration with relevant stakeholders, it added that “there was a need for cheque clearing to accommodate users of cheque as one of the payment instruments in Nigeria, despite the lockdown of some states and the Federal Capital Territory (FCT).”

    It stated, “In view of the development, the bank hereby lift the temporary suspension of cheque clearing in Nigeria. Consequently, cheque instruments will be allowed to pass through the clearing system, with effect April 28, 2020.”

  • CBN suspends cheque clearing indefinitely

    The Central Bank of Nigeria (CBN) has directed that cheque clearing should be suspended.

    According to a notice signed by Sam Okoreje, director of CBN banking services department, the suspension is effective from March 31.

    The notice was addressed to all deposit money banks in the country and the Nigeria Interbank Settlement System (NIBSS).

    The notice said the suspension is related to the lockdown in Lagos, Ogun and Abuja announced by the president on Sunday.

    “In view of these recent developments and in furtherance of the bank’s effort to ensure hitch-free and clearing activities, the Central Bank of Nigeria hereby suspend, until further notice, the clearing of cheques instruments in the Nigerian clearing system starting from March 31, 2020.

    “For the avoidance of doubt, no fresh cheque instrument will be allowed to pass through clearing system on March 31, 2020.

    “Only returned cheques will be treated on the said date.”

    The notice, however, said settlement activities for electronic instruments will continue to hold during this period of suspension.

    The lockdown directive was issued by the president to curb the spread of COVID-19 across the country.

    A joint statement by the CBN and ministry of finance, budget and national planning on Monday however said the president has given approval for banks to conduct skeletal services.

  • Lagos Govt compensates family of slain LASTMA official, issues N10m cheque

    The Lagos State Government says it has fulfilled its promise to compensate the family of late officer of the Lagos State Traffic Management Authority, Adeyemo Oke, who was murdered by a trigger-happy policeman, Olukunle Olonade, in December 2018 at Iyana Ipaja while on duty.

    Presenting a N10m cheque to the deceased’s family on behalf of the state government on Friday at their Ipaja residence, the Permanent Secretary of the state Ministry of Transportation, Dr Taiwo Salam, said the late Adeyemo was a dedicated, loyal and committed traffic officer and servant of the state government who would not be forgotten in a hurry.

    Salam said Adeyemo’s death on duty was a testimony to his gallantry and commitment to restoring law and order to Lagos roads.

    While praying for the repose of his soul, the permanent secretary enjoined the family to take the education of Adeyemo’s children and future seriously.

    In his comment, the General Manager of the agency, Olawale Musa, described Adeyemo as a hero and someone that laid down his life for the service of God and humanity.

    Musa said the agency, in appreciation of his contribution to freeing Lagos roads of lawlessness, chaos and impunity had instituted a merit award to reward hard-working staff members.

    He added that the award tagged “Bakare-Adeyemo Merit Award,” was instituted two weeks ago to keep his memory and that of the late Surajudeen Bakare, who was killed in similar circumstances, would remain in the hearts of colleagues.

    “The gallant officers did not die in vain as their good work will continue to be valued by the agency forever,” Musa stated.

    He enjoined family of the deceased to take solace in his good work while noting that he had left his footprints in the sand of time.

  • CBN sets five-year timeline on cheque storage

    The Central Bank of Nigeria (CBN) has set a five-year timeline for banks to keep physical cheque presented to them by customers after which the instrument may be disposed.

    This is contained in the Nigerian Bankers’ Clearing System (NBCS) Rules released Wednesday by the apex bank. The policy is in line with the CBN’s exercise of the powers conferred on it under Sections 2(d), 33 (1)(b) and 47(2) of the CBN Act 2007 — to promote a sound financial system, issue guidelines, facilitate the development of an efficient and effective payments system.

    The NBCS Rules, which took effect immediately, said any licensed bank that is not a member of the NBCS may enter into an agency agreement with any member – bank for the purpose of accepting cheques and other instruments drawn on it and for collecting cheques drawn on other banks.

    A member bank may be penalised by suspension from participating in clearing for such periods as shall be determined by the CBN for non-attendance of two consecutive meetings of the Committee, without a satisfactory reason communicated in writing within five working days before or after any scheduled meeting.

    Eligible financial instruments for clearing purposes are paper-based payment instruments, such as cheques, managers cheques, drafts , dividend/interest warrants, debit/credit notes, bankers payments.

    Paper-based Payment Instruments deposited by the customer at any member bank shall be deemed paid by 10pm of the next working day (T+1) except where it is returned by the paying bank, a special caution or an extension of value date request has been received from the paying bank.

    A settlement bank shall maintain strict confidentiality in respect of any confidential information made available to it pursuant to their settlement agency agreement and may not disclose same except with the express permission of the Non-Settlement Bank or as may be lawfully required.

    Also, Settlement Bank shall not use any information provided by Non-Settlement Bank for any purpose other than as permitted or required under the Agency Agreement.