CBN Directs Banks to Accept Cheques in Savings Accounts

By Obinna Chima

The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to allow their customers that are savings account holders to lodge in cheques in their accounts.

Director, Banking and Payment System Department, CBN, Mr. ‘Dipo Fatokun, stated this in a circular posted on the central bank’s website.

According to the apex bank, savings account customers with Bank Verification Number (BVN) should be allowed to deposit cheques not more than N2 million in value per customer per day into their accounts.

It explained that the decision to allow cheques in savings accounts was in furtherance of its efforts at strengthening the Nigerian payments system.

Furthermore, the CBN announced the removal of fixed interest rate on credit cards and discontinued the actual address verification in account opening, for customers with BVN.

It also asked banks to begin to embed BVN biometric data in payment cards issued henceforth, to facilitate off-line BVN verification and biometric-based customer authentication on payment devices as ATM, Point of Sale (PoS), kiosks, etc.

“Banks should begin to embed the BVN on all payment cards issued henceforth to facilitate off-line BVN verification and biometric-based customer authentication in such payment devices as the Automated Teller Machines, Point of Sale Terminal, kiosks etc.

“Savings account customers with the BVN should be allowed to deposit cheques not more than N2m in value into their savings account per, customer per day. Please, be guided and ensure strict compliance with the content of this circular,” it stated.