CBN to Implement Policy on Third Party Cheques Nationwide

CBN Governor, Sanusi Lamido Sanusi

Obinna Chima

The Central Bank of Nigeria (CBN) yesterday announced that the policy which prohibits the presentation of third party cheques above N150,000 over the counter will be extended nationwide from June 1, 2013.

The policy has been effective only in Lagos state since last year, following the commencement of the pilot phase of the cashless policy in the state.

The apex bank stated this in a circular signed by its Director, Banking and Payment System Department, Mr. Dipo Fatokun, Director, Banking and Payment System Department, a copy of which was posted on its website.

The circular addressed to all deposit money banks, microfinance banks as well as primary mortgage banks, said that the extension became necessary following the success recorded in Lagos.

It added that the initiative had drastically led to reduction of fraud on cheques and also aided the National Financial Inclusion strategy.
“In recognition of its role in the development of an efficient payment and settlement system, the CBN undertook some major initiatives to modernise the system.

“In view of the above, all banks are hereby directed to ensure the implementation of N150,000 limit on third party cheques that could be cashed over the counter nationwide, with effect from June 1, 2013,” it explained.

It also warned banks that were used to charge their customers in respect of payment of third party cheques below N150,000 cashed over the counter to “stop charging customers on third party cheques of up to N150,000 cashed over the counter.”