The Central Bank of Nigeria (CBN) has taken a firm stand on cheque security by imposing a N10 million fine on commercial banks that engage unaccredited cheque printers or personalisers. The apex bank also announced the immediate withdrawal of any cheques produced by non-accredited printers, signaling a stricter enforcement of banking standards.
This move was outlined in CBN’s revised sanctions regime under the Nigeria Cheque Standard (NCS) and Nigeria Cheque Printers’ Accreditation Scheme (NICPAS). The new rules specify that repeat offenders will face a steeper penalty of N20 million, while banks failing to submit personalized cheque samples for testing will be fined N5 million. Additionally, errors in encoding or failure to meet mandatory security standards will attract N10,000 per cheque.
In a circular signed by Mr. Hamisu Abdullahi, Director of the Banking Services Department, CBN recalled its initial 2019 sanctions on cheque standard defaulters. The revised sanctions aim to reflect the current realities in Nigeria’s banking sector, emphasizing safety, efficiency, and compliance in the cheque clearing process.
“The bank is committed to increasing the efficiency and safety of the Nigeria Clearing System. Updating the sanctions grid is essential to ensure banks and accredited cheque printers comply with NCS/NICPAS 2.0 standards,” CBN noted in the circular.
The new enforcement framework sends a strong message to banks across Nigeria: non-compliance with cheque printing regulations will no longer be tolerated. Financial institutions are now expected to strictly use accredited printers, maintain cheque quality standards, and submit all personalized cheques for proper testing to avoid penalties.
source: vanguard