CBN suspends instant Cheque alerts to reduce cheque-related losses

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The Central Bank of Nigeria (CBN) has directed commercial banks to suspend instant notifications for cheque deposits until the funds are fully cleared. This policy aims to protect businesses and individuals from financial losses caused by premature reliance on unconfirmed payments.

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According to the CBN, “Instant alerts for cheque deposits created a false impression of funds availability, prompting some customers to release goods or services prematurely.” By delaying alerts until confirmation, the agency is “safeguarding the credibility of cheque-based transactions”.

What the Policy Means for Customers:

– No Instant Alerts: Customers will only receive alerts after the cheque has been fully processed, either credited or returned unpaid.

– Avoid Premature Releases: Businesses should wait for confirmation before delivering goods or services to avoid losses from dud cheques.

– Fraud Risk Reduction: The policy aims to curb losses from bounced cheques and enhance trust in payment systems.

Access Bank has notified its customers of the change, stating, “You will only receive alerts for other banks’ cheques paid into your account after the cheque has been fully processed, either credited or returned unpaid.” The bank encourages customers to monitor account activity via various digital channels.

The CBN’s measure is part of its broader effort to modernise and secure payment systems, acknowledging that cheques remain a key payment method in wholesale trade and B2B transactions in Nigeria.

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