The Central Bank of Nigeria (CBN) on Tuesday, said it will monitor the level of compliance by Deposit Money Banks (DMBs) in accordance with its recently issued circular on the Nigerian cheque standard. The apex bank vowed that it will sanction any bank with Magnetic Ink Character Recognition (MICR) reject by November 1. 2023.
In a circular to all DMBs titled: “Circular on the revised Nigeria Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS): Magnetic Ink Character Recognition (MICR) reject”, CBN explained that the penalty and advice were in its bid to reduce the reported increase in MICR failures in banks.
It further directed DMBs 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.
The circular signed by the Director, Banking Services Department, Mr. Sam Okojere, stated: “Recall that the CBN issued the NCS and NICPAS, version 2.0 on 18th of September, 2018 to increase the efficiency and security of the Nigeria Clearing System.
“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.”