CBN Orders Banks to Reject Liquidated Banks’ Cheques

Legacy banks’ cheques will no longer be accepted by any Nigerian bank, beginning from today,  the first day of work in the new year across the country, Nigeria CommunicationsWeek has learnt.

The so called legacy banks are Afribank Plc, Bank PHB Plc, FinBank Plc, ETB Bank Limited, Oceanic Bank Plc and Spring Bank Plc.

Dapo Fatokun, director, Banking and Payment System, Central Bank of Nigeria (CBN) said in a statement that bank that flouts the directive would be sanctioned in line with extant guidelines.

The statement read: “The Central Bank of Nigeria has noted with concern, the prevalence of legacy/liquidated banks’ financial instruments being processed and cleared for settlement in various clearing houses.

“This development is unacceptable and should be discouraged forthwith. The deposit money banks are advised to stop issuance and circulation of legacy/liquidated banks’ financial instruments in our clearing system particularly as we have migrated to Nigeria Uniform Bank Account Number.” Fatokun said.

Already, FCMB, has advised its customers that from January 2, 2013, it would no longer honour  legacy cheques.

According to a statement posted on its website, FCMB said the new policy is as result of an advise from the Central Bank of Nigeria).

The statement reads: "Please note that as from January 2, 2013, all legacy bank cheques (that is, those of Afribank Plc, Bank PHB Plc, FinBank Plc, ETB Bank Limited, Oceanic Bank Plc and Spring Bank Plc) will no longer be accepted as advised by the Central Bank of Nigeria."

FCMB added "that means that such cheques when presented for transactions and clearing will no longer be honoured."