CBN Warns Banks Against Issuance Of Substandard Cheques, Set To Sanction Offenders

The Central Bank of Nigeria has warned Deposit Money Banks (DMBS) and cheque printers and personalizers over the surge in substandard ‘Magnetic Ink Character Recognition line’ (MICR Line) in their cheques.

The Central Bank said it has observed a surge in the number of MICR Line rejects during check-related transactions.

The apex bank issued the warning in a circular dated October 9 addressed to Deposit Money Banks and published on its website on Tuesday.

MICR Line means the numbers, which may include the bank routing number, account number, cheque number, cheque amount, and other information, that are printed near the bottom of a cheque in magnetic ink in accordance with the Nigeria Cheque Standards.