Banks Reject Cheque Issuance To Savings Account Users

Deposit Money Banks (DMBs) are yet to comply with the Central Bank of
Nigeria (CBN) directive that they allow cheques payments into savings
accounts.

The apex bank instructed the lenders that 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.

But two months after, the lenders claimed they were still upgrading
their systems to enable them comply with the directive.

Adebola Oloye, a customer of one of the deposit money banks, told The
Nation that his lender rejected a cheque of N200,000 he wanted to
lodge into his savings account, outright.

"The banks are not complying with the CBN's directive. The apex bank
has to compel them to do the needful because I believe the policy will
help to boost confidence in the banking system," he said.

CBN Director, Banking and Payment System Department, 'Dipo Fatokun,
had said the decision to allow cheques in savings accounts is in
furtherance of its efforts at strengthening the Nigerian payments
system.

The apex bank removed 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 such payment devices as Automated Teller Machines (ATM), Point of
Sale (PoS), kiosks, among others.

Former Keystone Bank Executive Director, Richard Obire, said the banks
had no reason not to comply. He said: "The CBN needs to wake the banks
up by setting a compliance deadline for them otherwise, the objective
of the policy shift will not be achieved."

He added: "In the past, they asked their customers to get two
references before cheques are acceptable into the accounts. I
understand they are taking precautions as accepting cheques can expose
them to risks, but with the BVN and registered mobile phone details, I
think they should comply without further delay".

Obire explained that accepting cheques into savings accounts would
boost financial inclusion and create opportunity for low income
earners to pay their dividend warrants and other cheque-related
instruments into their accounts, until such accounts can be credited
directly through the e-dividend platform.

-TheNation