Central Bank of Nigeria (CBN) has set a 5-year timeline for banks to keep physical cheque presented to them by customers after which it may be disposed.

This was contained in the Nigerian Bankers’ Clearing System (NBCS) rules released in Abuja.

The apex bank explained that the policy was in line with the exercise of the powers conferred on it under sections 2(d), 33 (1)(b) and 47(2) of the CBN act 2007 — to promote a sound financial system, issue guidelines, facilitate the development of an efficient and effective payments system.

The NBCS rules, which took effect immediately, said any licensed bank that is not a member of the NBCS may enter into an agency agreement with any member bank for the purpose of accepting cheques and other instruments drawn on it and for collecting cheques drawn on other banks.

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