CBN Moves Commencement Date For New Cheque Standard, Blames Covid-19

The Central Bank of Nigeria has shifted the commencement date for the enforcement of the new cheque standard to the end of the first quarter due to the disruptions caused by the Covid-19 pandemic on the project.

The regulator disclosed this on Friday in a circular on the Revised Nigeria Cheque Standard and Nigeria Cheque Printers Accreditation Scheme.

The apex bank had last year given January 1, to enforce the new cheque standard.

But in the fresh directive to banks, the CBN said it has given a grace period of three months from January 1, to March 31, 2021.

The new cheque would introduce new digits on the Magnetic Ink Character Recognition code line and expiry dates for new cheque books.

The CBN said, “The parallel run, in which old and new cheques are allowed to co-exist, will end 31 March 2021.

“ Full enforcement of the 2nd edition of the Nigeria Cheque Standard and Nigeria Cheque Printers Accreditation Scheme version 2.0 will commence 1st April 2021 and the NCS/NICPAS 2.0 Sanction grid will be fully operational on April, 2021.”

Consequently, the CBN directed Deposit Money Banks to ensure full engagement of their customers in the transition process.

It said, “All Deposit Money Banks are directed to actively enlighten their customers and ensure necessary provisions are put in place for a smooth migration to the new standard.

“The extension of full implementation date from 1st January 2021 to April 1, 2021 is due to outbreak of the Covid-19 pandemic and the impact it had on the Nigeria Cheque Standard and Nigeria Cheque Printers Accreditation Scheme Version 2.0 project.”

The bank had said in October that the project would help to improve the clearing infrastructure to increase the efficiency of the system.

It added, “The Bank has approved the revised Nigeria Cheque Standards and Nigeria Cheque Printers Accreditation Scheme, to improve the safety and efficiency of the clearing system.

“Notable changes in the revised Standards include introduction of Quick Response Code for faster verification of cheque details, expiry date of printed cheque booklet and clear zone at the back of the cheque.”