Banks to extend validity period of cheque to 5 years
The Central Bank of Nigeria has directed commercial banks in Nigeria to keep physical cheque presented to them by customers for up to five years after which it can be disposed.
A document released by the Nigerian Bankers’ Clearing System (NBCS) Rules on Wednesday in Abuja said the policy was in line with the exercise of the powers conferred on it under Sections 2(d), 33 (1)(b) and 47(2) of the CBN Act 2007 — to promote a sound financial system.
According to the new guideline which takes immediate effect, a member bank may be penalised by suspension from participating in clearing for such periods as shall be determined by the CBN for non-attendance of two consecutive meetings of the Committee, without a satisfactory reason communicated in writing within five working days before or after any scheduled meeting.
“Eligible financial instruments for clearing purposes are paper-based payment instruments, such as cheques, managers’ cheques, drafts, dividend/interest warrants, debit/credit notes, bankers’ payments,” the new guideline stated.