The Central Bank of Nigeria, CBN, has said it will start penalizing Deposit Money Banks, (DMBs), whose equipment distort images and data being transmitted during cheque transaction processes from November 1st 2023.
The apex bank further advised DMBs to examine their in-house cheque processing equipment to ensure that they are properly calibrated and supervised.
This was communicated in a circular to all DMBs signed by the Director, Banking Services Department, Sam Okojere explaining that the penalty and advice were in its bid to reduce the reported increase in MICR failures in banks.
“It has come to our notice that MICR rejects have been on the increase and in furtherance of the bank’s effort to reduce the number, Deposit Money Bank (DMBs) are hereby directed to contact their personalizers and reiterate the need to revalidate the MICR codeline details for correctness in accordance with the NCS and NICPAS version 2.0.
“Furthermore, both the presenting and receiving banks should also thoroughly examine their in-house cheque processing equipment to ensure that they are properly calibrated and supervised to eliminate distortion of image and data being transmitted during the cheque truncation process.
“Note that the bank will monitor compliance with the provision of this circular and any bank with MICR reject starting from 1st November, 2023 would be penalized in accordance with the Sanctions Grid. Please be guided accordingly.”