Nationwide Encashment of 3rd Party Cheques above N150,000 over the counter of banks and stoppage of charges

4th March, 2013 BPS/DIR/GEN/CIR/01/001 TO ALL DEPOSIT MONEY BANKS CIRCULAR TO ALL NIGERIAN DEPOSIT MONEY BANKS, MICROFINANCE BANKS & PRIMARY MORTGAGE BANKS ON THE NATIONWIDE ENCASHMENT OF 300 PARTY CHEQUES ABOVE N150,000.00 OVER THE COUNTER OF BANKS AND STOPPAGE OF CHARGES ON 3RD PARTY CHEQUES BELOW N150,000.00 In recognition of its role in the development of an efficient payments and settlement system, the Central Bank of Nigeria undertook some major initiatives to modernise the system. One of such initiatives was that 3nd party cheques above N150,000.00 shall not be cligible for encashment over the counter. It has been observed that the policy has succeeded immensely in the Lagos area and has also contributed to the reduction of fraud on cheques and aided the National Financial Inclusion (NFI) strategy.

In view of the above, all banks are hereby directed to ensure the implementation of N150,000.00 limit on 3d party cheques that could be cashed over the counter nationwide, with effect from June 1, 2013.

It has also been observed that some banks charge their customers in respect of payments of 3rd party cheques below ¥150,000.00, cashed over the counter. By this circular, all banks are hereby directed to stop charging their customers for 3d party cheques of up to ¥150,000.00, cashed over the counter. Kindly note and ensure strict compliance.

Dipo Falokun Director, Banking & Payments System Department 09-46238455