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The Central Bank of Nigeria (CBN) has stepped up its campaign against the issuance of dud cheques with a vow to hand over whoever issues three dud cheques to the Economic and Financial Crimes Commission (EFCC) for investigation and prosecution.

Along this line, the apex bank has directed all banks in the country to warn their customers about the grave consequences of issuing cheques when they do not have enough money in their accounts to fund such cheques.

The CBN in a circular with reference number FPR/DIR/CIR/GEN/03/005 and dated July 5, 2013 expressed displeasure that the volume of dishonoured cheques in the country’s financial system is on the increase and has shown no signs of declining.

The circular signed by Y. B. Duniya on behalf of CBN’s Acting Director, Financial Policy and Regulation Department, disclosed that over 167,507 dud cheques with a total value of N166 billion were processed by deposit money banks in the country last year alone.

“The implication of this development,” according to the apex bank, “is the low confidence generated in the use of financial instruments which adversely affects the ‘cash-lite’ policy aimed at reducing the volume of cash based transactions in Nigeria.”

The apex bank directed all banks in the country to identify customers who have issued dud cheques on three instances with effect from July 5, 2013 and to send details of such customers together with copies of the dud cheques to CBN for further action.

“Customers of financial institutions should be informed that henceforth, the CBN, in order to check this malaise in the banking sector, will forward account details of erring customers to the Economic and Financial Crimes Commission (EFCC) for further investigation and prosecution,” the circular said.

•Photo shows CBN Governor, Mallam Sanusi Lamido Sanusi.

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