Consequence Of Issuing A Dud Cheque

In order to ensure that individual and corporate account holders refrain from issuing Dishonoured (Dud) cheques, the Central Bank of Nigeria (CBN) has imposed additional regulatory measures/sanctions against dud cheques issuers.

Henceforth, all Banks will be required to:

·         Recall/cancel all unused cheque books issued to serial issuers of Dud cheques.

·         Bar affected customers from using the clearing system for a period of (5) years.

·         Forward the names of Dud Cheque Offenders to the three private Credit Bureaux and the Credit Risk Management System (CRMS). Details of such clients will be listed on the Private Credit Bureaux and the Credit Risk Management System (CRMS) database for a five (5) year period.

·         If the offender is found wanting after the 5 year period, they shall be reinstated permanently in the Private Credit Bureaux and the Credit Risk Management System (CRMS) database.

·         Bar the serial issuers of Dud cheques from accessing credit facilities from the Banking system for a period of 5 years.

·         Perform status check on all potential customers from CRMS and at least two (2) Credit Bureaux before on-boarding them.

Kindly ensure that your account is funded adequately at all times to accommodate any cheques that may be drawn on it.

Also Note Issuing of dud cheques can also land you in court and then prison. so AVOID it