Starting from November 1, 2023, the Central Bank of Nigeria (CBN) is set to enforce penalties on deposit money banks (DMBs) that reject bank cheques. This action is in response to a growing trend of Magnetic Ink Character Recognition (MICR) rejects. The CBN issued a circular last week, emphasizing the need for DMBs to validate the MICR code-line details to reduce these rejections.
MICR technology is used by the banking industry to streamline the processing and clearance of cheques, and it involves the coded numbers found at the bottom left of a cheque. The CBN has expressed concerns about the increasing number of MICR rejects and aims to address this issue through enforcement.
According to the circular, DMBs are directed to contact their personalizers and ensure the correctness of the MICR code-line details in accordance with the Nigerian Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS) version 2.0. The CBN will monitor compliance with this directive, and any bank with MICR rejects after November 1, 2023, will face penalties based on a Sanction Grid.
Read Also:
- Magu: Former EFCC Boss Reacts To His Boys Caught Demanding ₦75 Million Bribe
- What Laycon Said After He Was Presented With N30m Cheque, SUV, House
To resolve this problem, presenting and receiving banks are advised to thoroughly inspect their in-house cheque processing equipment to ensure proper calibration and supervision. This will help eliminate any distortion of image and data during the cheque truncation process, thus reducing MICR rejects.
The CBN has consistently updated its list of accredited cheque printers and personalizers to ensure efficiency and security within the Nigeria Clearing System. This latest move is part of the CBN’s ongoing efforts to enhance the efficiency and security of the country’s payment and settlement systems.
Follow us on Facebook
Post Disclaimer
The opinions, beliefs and viewpoints expressed by the author and forum participants on this website do not necessarily reflect the opinions, beliefs and viewpoints of Anaedo Online or official policies of the Anaedo Online.