Accra: The Bank of Ghana (BoG) has unveiled a revised sanctioning regime aimed at reducing the issuance of dud cheques, demanding strict adherence from all banks and Specialised Deposit-Taking Institutions (SDIs). This move is part of the central bank's efforts to address the persistent issue of dud cheques that continue to undermine the credibility of cheques as a payment method in Ghana.
According to Ghana News Agency, the BoG has noted a concerning trend of dud cheques being issued by certain customers, prompting the need for tougher penalties. The new measures outline an escalating scale of penalties for repeat offenders. For a first offence, banks or SDIs are required to charge 10% of the cheque's face value from the account holder and issue a formal Warning Notification. This notice can be sent through various means such as SMS or email, informing the customer of the repercussions of further violations.
The institution must also report the first offence to credit reference bureaus and the Bank of Ghana, placing the customer under surveillance for at least one year. Should a customer issue a second dud cheque within a year, a higher levy of 15% of the cheque's face value will be imposed, along with another warning and reporting to the necessary authorities.
For a third offence within the same one-year timeframe, the customer will face a 20% levy and a minimum three-year ban from issuing cheques nationwide. Additionally, the offender will be prohibited from accessing new credit facilities for one year, with all financial institutions being notified of this ban.
Upon notification, the customer's bank must inform them within five working days, recall all unused cheque books, and refrain from issuing new ones until sanctions are lifted. The BoG also retains the right to publish a list of third-time offenders. Failure to return unused cheque books within 10 days will result in further reporting, potentially leading to a ban from operating any current account and inclusion in a Central Bank Directory of High-Risk Cheque Issuers, serving as a reference for the entire banking industry.
