Banks reach out to customers on resumption of cheque clearance

Commercial banks operating in the countries have reached out to their customers that the Central Bank of Nigeria (CBN) has lifted its hold on interbank cheques clearing.

In separate e-mails to customers and seen by The Daily Times, commercial banks notified their customers about the resumption of cheque clearance.

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For instance, an email by the First Bank of Nigeria, a tier-one lender reads, “Further to our earlier communication on the temporary suspension of cheque clearing in Nigeria which was instituted on the 31 March 2020 by Central Bank of Nigeria (CBN), we are pleased to inform you that the CBN has now lifted the suspension.

 “To accommodate users of cheques and its use as one of the payment instruments in Nigeria in spite of the lockdown in some states and the Federal Capital Territory, all cheque instruments will now pass through the clearing system effective today 28 April 2020. 

 “Thank you for banking with First Bank.”

Similarly, a statement to customers by Fidelity Bank stated, “Further to our earlier communication on the temporary suspension of Cheque Clearing by the CBN, please be informed that the suspension has been lifted.

“Consequently, normal Clearing of Cheques will resume today April 28, 2020.”

Heritage Bank in a letter to its customers also informed its customers that it has begun cheque clearance with immediate effect following the directive to resume by the Central Bank.

“Further to our earlier notification of the Central Bank of Nigeria (CBN) suspension of cheque clearing sessions as part of the measures to curb the spread of COVID-19, please be informed that the suspension has been lifted. 

“Effective Tuesday, April 28, 2020, cheque instruments will be allowed to pass through the clearing system as usual and we encourage you to bring your other banks cheques for lodgement into your accounts with Heritage Bank. 

“Settlement activities for electronic instruments such as National Electronic Funds Transfer (NEFT) still remain available during this period. Remember you can still enjoy seamless transactions by using any of our alternate banking channels (HB Padie, HB TalkOn, HB Online, HB Mobile and USSD *745#).”

Meanwhile, the central bank had on Monday lifted the suspension on cheque clearing by the Deposit Money Banks.

The apex bank stated this in a circular to all the DMBs and Nigeria Inter-Bank Settlement System issued on Monday, titled, ‘Temporary suspension of cheque clearing in the Nigerian clearing system’, which was signed by its Director, Banking Services Department, Sam Okojere.

Part of the circular read, “In furtherance of its efforts in the development of a safe and efficient the payment system in Nigeria, the bank in collaboration with relevant stakeholders has reviewed the need for cheque clearing to accommodate users of the cheque as one of the payment instruments in Nigeria, despite the lockdown of some states and the Federal Capital Territory.

“In view of this development, the bank hereby lifts the temporary suspension of cheque clearing in Nigeria. Consequently, cheque instruments will be allowed to pass-through the clearing system, with effect from April 28, 2020.”

The CBN had earlier suspended the clearing of cheque instruments in the Nigerian clearing system with effect from March 31, due to the lockdown mandated by the federal government in Lagos, Ogun and the Federal Capital Territory.

It would be recalled that the CBN had a few weeks ago put on hold clearing in the Nigerian financial system, stating that all deposit money banks in the country and the Nigerian Interbank Settlement System (NIBSS) is to put on hold the clearing of all cheque instruments in the Nigerian Clearing System, starting from March 31st, 2020.

According to the apex bank’s Director of Banking Services Department, Sam C. Okojere, the directive is intended to “ensure hitch-free clearing and settlement activities” during the 14-day lockdown in Lagos, Abuja and Ogun State.

Following the directive, new cheques have not been allowed to pass through the Nigerian Clearing System which is overseen by the NIBSS.

In other words, deposit money banks had stopped accepting fresh cheques that require to go through the clearing system.

But it is, noteworthy that the Nigerian Clearing System integrates all the banks in the country, making it possible for customers of different banks to easily clear cheques issued to them by other account holders who do not necessarily bank with the same financial institution.

Following the suspension, therefore, Nigerians were no longer able to clear cheques issued to them by third party bank account holders until now that the suspension is lifted.