The Central Bank of Nigeria (CBN) says banks and accredited cheque printers that repeatedly breach cheque standards will be penalised with fines of up to N20 million.
The CBN disclosed the penalty fee in a circular to all deposit money banks (DMBs) and cheque printers on Thursday, signed by Hamisu Abdullahi, director of its banking services department.
The circular, dated February 10, is titled ‘Revised Sanctions on Defaulters of the Nigeria Cheque Standard and Nigeria Cheque Printers’ Accreditation Scheme 2.0’, and is also addressed to personalisers.
According to CBN, the review is part of its efforts to strengthen the clearing system and align enforcement measures with current industry realities.
“Please recall that the Central Bank of Nigeria issued a circular on sanctions to defaulters of the Nigerian Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS) in 2019,” the circular reads.
“In furtherance of the Bank’s commitment to increase the efficiency and safety of the Nigeria Clearing System, it has become imperative to review the aforementioned sanction grid to reflect the current realities in the banking industry.”
Under the revised sanctions, the regulator said commercial banks that engage unaccredited cheque printers risk withdrawal of the affected cheques from circulation and a N10 million fine.
The CBN said a repeat offence will attract a N20 million penalty and a withdrawal of the cheques.
The apex bank said failure or refusal to submit personalised cheque samples for testing and analysis will attract a N5 million fine.
‘N10M FOR NONCOMPLIANCE WITH UNAPPROVED SECURITY STANDARDS’
The CBN also imposed stricter penalties for noncompliance with proper encoding, security, and quality standards, including a minimum fine of N10,000 per instrument.
The institution said accredited cheque printers and personalisers that introduce unapproved security features face a N10 million fine per feature, noting that the penalty will be shared equally between the commercial bank and the printer.
“Failure to produce or personalise cheques in conformity with approved standards will attract reprinting at the offender’s cost and a N10 million fine, while repeat violations will draw a N20 million penalty,” the circular reads.
The apex bank also warned that subcontracting more than 50 percent of a cheque printing job outside approved business continuity or disaster recovery arrangements could result in a N20 million fine and possible withdrawal of accreditation for repeat breaches.
On regulatory compliance, the CBN said cheque printers that fail to respond to queries within seven days after a warning will incur a N1 million daily fine.
“Suspension of Accreditation for a minimum period of 3 months in the event of continuous default exceeding 21 days after the initial warning,” CBN said.
“Commercial banks that fail to validate MICR data at the point of truncation face a minimum penalty of N10,000 per instrument.”
The financial regulator also said the introduction of unapproved watermarked paper will attract withdrawal of the affected cheques from circulation and a N20 million fine, with repeat violations leading to withdrawal of accreditation.
The CBN directed all stakeholders to comply with the revised framework as sanctions take immediate effect.
On November 5, 2025, CBN proposed a five-year ban for serial dud cheque issuers.
