Home Business Reform of Dishonoured Cheque Act will enhance CBN cashless policy – Commission

Reform of Dishonoured Cheque Act will enhance CBN cashless policy – Commission


ABUJA – The Nigerian Law Reform Commission says the proposed reform of Dishonoured Cheque Act will enhance the cashless policy of the Central Bank of Nigeria (CBN) and promote the use of cheque as a means of payment.
This formed part of recommendations contained in a communiqué issued by the Commission at the end of a workshop on the Reform of the Dishonoured Cheque (Offences) Act.
In the communiqué, made available to the News Agency of Nigeria (NAN) on Thursday in Abuja, the Commission said the reform was to address the inadequacies that made the Act ineffective.
It stated that “the reform of the Act is necessary in view of the fact that 37 years after the Act was passed, the incidence of dud cheque remained on the increase in Nigeria.
“It is therefore important to address the inadequacies that have made the Act ineffective.’’
It further noted that fines, as a form of penalty for the offence of dishonoured cheque should be enhanced, especially for corporate offenders.
“This is because custodial punishment could jeopardise or frustrate the civil remedies available to the victim.’’
According to the recommendations, a customer who habitually issues a dud cheque within a given period of time should be barred from operating an account in Nigeria for one year.
It also recommended that the three months limitation period within which a cheque must be presented as provided under Section 1(1) of the extant Act for the provision of the Act to apply should be extended to a period of six months.
“This is in line with Section 74 (a) of the Bills of Exchange Act, 1990 and Banking Practice.’’
The Commission further proposed an institutional synergy among the banking sector and appropriate law enforcement agencies for effective prosecution of offenders under the Act.
Meanwhile, the draft of the amended Act is to be submitted to the Attorney-General of the Federation and Minister of Justice for further necessary action. (NAN)

Previous articleMobile subscriptions in Africa near the billion mark in Q3 2014 – Report
Next articleCrocodile devours pregnant woman in Uganda

Leave a Reply