Cheques to conform to new standard by August 31 —CBN

THE Central Bank of Nigeria (CBN) has reminded  all Deposit Money Banks (DMBs) that cheques ordered after August 31, 2019 must conform to the new Cheque Standard, known as Nigerian Cheque Standard (NCS).

It should be  recalled that the CBN reviewed the NCS and Nigeria Cheque Printers Accreditation Scheme (NICPAS), to increase the efficiency and security of the Nigerian Clearing System.

In this regard, the bank issued a circular dated September 18, 2018 stipulating the implementation timelines, amongst other components of the revised NCS/NICPAS 2.0 document.

Information from the apex bank hinted on the need to give more time to the operators to meet the requirements of the new NCS/NICPAS 2.0, test the necessary changes and sensitise the relevant stakeholders. This is to ensure a hitch-free take-off of the revised guidelines.

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In view of this, the CBN said it has become imperative for the bank to amend the implementation timelines of the revised NCS/NICPAS 2.0 as follows: the new and the old cheques shall run concurrently for 17 months from the above-mentioned implementation date, after which the old standard would be phased out; All cheques ordered after September 1, 2019 must conform to the new standard.

By 1st September 2020 only cheques that conform to the new standard shall be allowed in the automated cheque clearing system.

According to the apex banking sector regulator, Deposit Money Banks and Companies that wish to personalize cheques in line with the new standard must seek for and be accredited by the CBN.

DMBs are required to engage their respective Service Providers to prepare their In-Clearing Application to support the processing of cheques designed in line with the new standard.

Consequently, all DMBs that wish to personalize their cheques should note that their MICR application would also need to be reviewed along this line, to ensure a seamless personalisation, in accordance with the NCS/NICPAS 2.0 the bank stated.