Revised Nigeria cheque standard – In line with International standard that cash and near money instruments should be reviewed after 5-8 years, the Nigerian cheque standard will further take a new dimension.
On why this review will take place include but not limited to:
To take advantage of latest innovation in cheque printing and security
To further secure the cheque by addressing some of the observed gaps since the inception of version 1.0
To ensure the financial system is ahead of fraudsters
To reduce the turn-around-time (TAT) of cheque processing at the banks by having minimal/no reject items that require manual intervention during scanning
To shape the bank for future development in the payment system e.g. graduating from T+1 to T+0 for cheques valid for clearing.
After careful review of the process, determined and reasonable changes have been made in the following capacity:
Space for payee and amount in words
Date format has changed
Location for amount in figure
Position of hologram, tri-thermochronic ink Seal and Duty stamp Seal
Now visible audit number
Introduction of code line preservation and beneficiary account number space on the reverse of cheques.
Introduction of cheque Personalize certification number and addition of production date to Cheque printers Certification number on cheque leaves.
The implementation start date of the revised NCS/NICPAS 2.0 is April 1,2019
The new and old cheques shall run concurrently for 17 months from the aforementioned implementation date, after which the old standard would be phased out. As a customer, you are encouraged to request for your new cheques as soon as possible.
By September 1,2020 only cheques that conform to the new standard shall be allowed in the automated cheque clearing system.
The new cheques will carry expiry dates – five years from the date of personalization, which implies that cheques will now expire five years after personalization date.
Photo credit: Shutter stock
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