Cbn stop dud cheque issuers operating current account

A very specific and interesting question!

CBN stands for Central Bank of Nigeria, and "stop dud cheque issuers operating current account" is a directive issued by the CBN to commercial banks in Nigeria.

In essence, the CBN is instructing commercial banks to prevent individuals or organizations that issue dud cheques (cheques that are dishonored or bounced) from operating their current accounts. This means that if a customer issues a dud cheque, the bank will freeze their current account until the issue is resolved.

Here are the details of the directive:

CBN Directive:

• The CBN has issued a circular to commercial banks in Nigeria, directing them to implement a system to prevent customers who issue dud cheques from operating their current accounts.
• The directive is aimed at reducing the incidence of cheque bouncing and promoting a culture of responsible banking in Nigeria.
• The CBN has given banks a deadline to implement the system, which is expected to be completed within a specified timeframe.

Consequences of Issuing a Dud Cheque:

• If a customer issues a dud cheque, the bank will freeze their current account until the issue is resolved.
• The customer will not be able to operate their account until the cheque is cleared or the issue is resolved.
• The customer may also be charged a penalty fee by the bank for issuing a dud cheque.

Benefits of the Directive:

• The directive is expected to reduce the incidence of cheque bouncing and promote a culture of responsible banking in Nigeria.
• It will also help to protect the interests of banks and their customers by preventing the misuse of cheques.
• The directive will also help to reduce the cost of cheque bouncing, which can be a significant burden on banks and their customers.

In summary, the CBN's directive to stop dud cheque issuers operating current accounts is aimed at promoting responsible banking practices in Nigeria and reducing the incidence of cheque bouncing.