CBN: Banks migrate to new cheque standards January 1

Nigerian banks will migrate to new cheque standards on January 1, 2021 as the old ones expire 31 December.

The directive was given to all deposit money banks by the Central Bank of Nigeria.

From 1 January 2021, the old cheques will expire, said the First Bank in a notification to customers. It means the bank will no longer accept them for payments.

The new cheques come with unique features, according to the bank.

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

 

The CBN has been working in 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 Sam C. Okojere, director Banking Services Department.

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

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

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