Regulatory Alerts2009-12-11 | BOD/DIR/CIR/GEN/01/106Circular on Maximum Limit on Cheque Payment
The Central Bank of Nigeria has set a maximum limit of N10 million for cheque payments effective from January 1, 2010 as part of efforts to improve the efficiency of the payment system. Payments exceeding this limit must be made through electronic modes such as RTGS and NEFT. This measure serves as a risk reduction strategy in line with international best practice and is supported by an education initiative for customers on proper implementation procedures.
09-46238445 09-46238455 (Fax) CENTRAL BANK OF NIGERIA Central Business District P.M.B. 0187 Garki, Abuja BOD/DIR/CIR/GEN/01/106 December 11, 2009 CIRCULAR TO ALL DEPOSIT MONEY BANKS MAXIMUM LIMIT ON CHEQUE PAYMENT As a further step in its efforts at enhancing the efficiency of the payments system in the country, the Central Bank of Nigeria hereby sets a maximum limit on cheque payments at N10 million with effect from 1st January, 2010. To this end, any payment value exceeding N10 million should be made through the e-payment mode such as the Central Bank Inter-Bank Funds Transfers System (CIFTS i.e. RTGS) and Nigeria Inter-Bank Settlement System Electronic Funds Transfer (NEFT) from that date.
The maximum limit serves as a risk reduction measure in the clearing and settlement arrangement in line with international best practice. To support this initiative, Deposit Money Banks are implored to properly educate their customers on the implementation procedure.
Ag. Director, Banking Operations D epartment