Nigeria’s apex bank, the Central Bank of Nigeria (CBN), has issued an order to all Deposit Money Banks (DMBs) in the country to start implementing the new cheque standard from September 1st, 2019.
This is contained in a circular issued by the CBN to all banks in furtherance to its efforts to ensure a seamless transition to the new Cheque Standard.
It also stated that it has become necessary to send reminders to all the banks, noting that after the 31st August, all the commercial banks in the country will be required to adhere to this new order.
The Central Bank further stressed that in line with this new cheque standard, all parallel run for old and new cheques must conform to the standard. The new introduction is aimed at increasing the efficiency and security of the Nigerian Clearing System.
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The circular further revealed that the policy is in line with stipulations of the reviewed Nigeria Cheque Standard (NCS), the Nigeria Cheque Printers Accreditation Scheme (NICPAS) documents, and the exercise of powers conferred on the institution under Section 2(d). 33(1)(b) and 47(2) of the 2007 CBN Act.
Recall that the revision of the NCS and NCPAS, in which the apex bank said that by early August 2020, only cheques that conform to the new standard shall be allowed in the automated cheque clearing system.
The CBN, therefore, urged the Deposit Money Banks to ensure that their cheque processing systems are ready and available for the full implementation of the new cheque standard starting from the stipulated date.
The NCS and NICPAS were introduced by the Central bank in 2006 to increase the efficiency and safety in the Nigerian cheque clearing system, which the bank noted that the new and old standard shall run concurrently for one and half years, after which the old standard would be phased out.