The Bank of Ghana has revised its sanctions for customers who issue dud cheques, imposing fines of up to 20% of the cheque’s value. This move aims to curb the growing incidence of dud cheques in the country.
Sanctions for Issuing Dud Cheques
According to the Bank of Ghana, individuals and businesses that issue dud cheques will face severe penalties, including:
– First-time offenders: Receive a warning notification from their bank
– Second-time offenders: Receive a second warning notification, and their details will be reported to the Credit Reference Bureau and the Bank of Ghana
– Third-time offenders: Face a ban from issuing cheques and accessing new credit facilities from the banking system for a minimum of 3 years, effective June 28, 2024
Consequences of Issuing Dud Cheques
Issuing dud cheques is a punishable offense under Section 313(A) of the Criminal Offences Act 1960 (Act 29), as amended. The Bank of Ghana has imposed sanctions on 292 customers, including 47 individuals and 245 businesses, for repeatedly issuing dud cheques.
Bank of Ghana’s Stance
The Bank of Ghana is committed to promoting the integrity and soundness of the financial system. The central bank advises customers to use alternative channels, such as internet banking and mobile banking, to check their account balances before issuing cheques.
Impact on the Banking Industry
The revised sanctions are expected to reduce the incidence of dud cheques and promote a culture of responsible banking practices. The Bank of Ghana’s move has been welcomed by the banking industry, which sees it as a step towards maintaining the stability and integrity of the financial system.