Regulatory Alerts2018-11-08 | BKS/DSO/GEN/MPF/01/003Circular on the Revised Nigerian Cheques Standards (NCS) and NICPAS Sort Code and MICR Reject Flag
The Central Bank of Nigeria has issued a circular to all deposit money banks and the Nigeria Inter-Bank Settlement System regarding the implementation of the revised Nigerian Cheque Standard and Nigerian Cheque Printers Accreditation Scheme. The bank directs that the Sort Code on cheque instruments must align with the unique State Codes corresponding to the geographic location of the bank branches. Additionally, banks are mandated to activate the MICR reject/repair flag on their clearing system for accurate cheque statistics and industry decision-making.
CENTRAL BANK OF NIGERIA Central Business District P.M.B. 0187.
Garki, Abuja. +234 - 0946238445 BANKING SERVICES DEPARTMENT BKS/DSO/GEN/MPF/01/003 7th November, 2018 To: All Deposit Money Banks (DMBs) and the Nigeria Inter-Bank Settlement System (NIBSS) CIRCULAR ON THE REVISED NIGERIAN CHEQUE STANDARD (NCS) AND NIGERIAN CHEQUE PRINTERS ACCREDITATION SCHEME (NICPAS): SORT CODE AND MICR REJECT FLAG Kindly refer to the CBN circular of September 18tt, 2018, where the Bank communicated the approval of the second edition of the Nigerian Cheque Standard (NCS) and Nigerian Cheque Printers Accreditation Scheme (NICPAS), and the subsequent implementation guidelines. In furtherance of the Bank's effort to increase efficiency and safety in the Clearing system, the Bank hereby notifies all stakeholders that the Nigerian Cheque Standard (NCS) and Nigerian Cheque Printers Accreditation Scheme (NICPAS), aka Green Book Version 2.0, will be implemented using the unique State Codes stipulated as the components of the Sort Code on cheque instruments.
In view of this, all Deposit Money Banks (DMBs) should note that the Sort Code of their branches in different States must carry the same State Code as their geographic locations (State). DMBs are hereby directed to conform to the State Codes provided in this circular and ensure compliance. Consequently, Banks with Branches within a State but continue to use State Code for a different State shall be sanctioned.
In addition, all DMBs are mandatorily required to activate the MICR reject/repair flag on their Clearing system, for accurate cheque rejects/repair statistics report and good decision making for the industry.
Kindly note that, the Central Bank of Nigeria, in Collaboration with the MICR Technical Implementation Committee will monitor compliance with the requirements of this circular.
| STATE | CODE | STATE | CODE | STATE | CODE | STATE | CODE |
|---|---|---|---|---|---|---|---|
| ABIA | 23 | DELTA | 24 | KATSINA | 13 | OYO | 19 |
| ABUJA(FCT) | 08 | EBONYI | 33 | KEBBI | 27 | PLATEAU | 20 |
| ADAMAWA | 09 | EDO | 04 | KOGI | 28 | RIVERS | 21 |
| AKWA- | |||||||
| IBOM | 01 | EKITI | 34 | KWARA | 14 | SOKOTO | 22 |
| ANAMBRA | 02 | ENUGU | 25 | LAGOS | 15 | TARABA | 30 |
| BAUCHI | 03 | GOMBE | 32 | NASARAWA | 36 | YOBE | 31 |
| BAYELSA | 32 | IMO | 10 | NIGER | 16 | ZAMFARA | 37 |
| BENUE | 05 | JIGAWA | 26 | OGUN | 17 | ||
| BORNO | 06 | KADUNA | I J | ONDO | 18 | ||
| CROSS | |||||||
| RIVER | 07 | KANO | 12 | OSUN | 29 |
ALIGNMENT OF STATE CODE TO GEOGRAPHIC LOCATION (STATE) Please be guided accordingly.
'Dipo Fat Director, Banking Services Department a ' z