CBN tightens cheque regulation, revises fine to N20m

The Central Bank of Nigeria (CBN) has intensified its regulatory oversight of the national clearing system by rolling out a revised sanctions framework for banks and accredited cheque printers.

The new guidelines, contained in a circular dated February 10, 2026, introduce heavy financial penalties of up to N20 million for infractions, marking a drastic update from the previous 2019 sanctions grid to reflect current banking realities.

Under the updated Nigeria Cheque Standards (NCS 2.0) and Nigeria Cheque Printers’ Accreditation Scheme (NICPAS), the apex bank has signaled zero tolerance for compromised security features.

Commercial banks that bypass accredited channels by engaging unaccredited printers now face a N10 million fine, which doubles to N20 million for repeat violations along with the immediate withdrawal of the affected cheques from circulation.

Furthermore, the introduction of unapproved watermarked paper or unapproved security features will attract a N20 million penalty, a cost that may be shared between the bank and the printer depending on the nature of the breach.

The framework also targets operational and technical negligence with precision. Printers that fail to submit quality assurance reports or subcontract more than 50% of their workload to other operators outside of a verified Disaster Recovery arrangement risk a N20 million fine and potential loss of accreditation.

On a more granular level, accredited personalisers that fail to properly encode Magnetic Ink Character Recognition (MICR) data or meet mandatory quality standards will be liable for a minimum penalty of N10,000 per instrument.

To ensure swift compliance, the CBN has established a daily penalty system for operators who ignore regulatory queries. Failure to respond to findings from a CBN or MTIC audit within seven days of a warning will result in a N1 million daily fine, with a potential three-month suspension if the default exceeds 21 days.

By enforcing these stringent measures, the CBN aims to strengthen the integrity of the Nigeria Clearing System and safeguard public confidence in the nation’s payment and settlement infrastructure.