The Bank of Ghana has announced stringent new sanctions against customers who issue dud cheques, as part of efforts to restore confidence in Ghana’s payment system and curb the persistent abuse of cheque transactions within the banking sector.
In a new directive issued on June 24, 2026, the Central Bank expressed grave concern over the continued rise in the issuance of dishonoured cheques by customers of banks and Specialised Deposit-Taking Institutions (SDIs), despite previous regulatory interventions introduced in 2021 and 2025.
According to the notice, the increasing circulation of dud cheques is undermining public trust in cheque transactions and negatively affecting the credibility of Ghana’s financial and payment systems.
Under the new measures, customers who issue dud cheques will face escalating financial penalties, credit restrictions, and possible bans from operating cheque accounts.
The directive states that any customer who issues a dud cheque for the first time will be charged a penalty equivalent to 10 percent of the cheque’s face value.
The offending customer will also receive an official warning notification outlining the consequences of repeated offences.
Additionally, banks and SDIs are required to report such customers to both the Credit Reference Bureaus and the Bank of Ghana.
The affected customer will also be placed under surveillance for a minimum period of one year.
The Central Bank explained that the warning notifications may be communicated through Short Message Service (SMS), email, or any officially established communication channel between the financial institution and the customer.
For a second offence committed within one year of the first incident, the customer will face a higher penalty of 15 percent of the cheque’s value. The bank or SDI must again notify the customer and report the matter to the Credit Reference Bureaus and the Bank of Ghana.
Customers who issue dud cheques for the third time within one year of the first offence will face even tougher sanctions.
Such customers will be fined 20 percent of the cheque’s face value and subsequently banned by the Bank of Ghana from issuing cheques in Ghana for a minimum period of three years.
Although affected customers may continue to receive funds and conduct electronic transactions on their accounts, the Central Bank stated that they will be prohibited from accessing new credit facilities within the banking system for one year.
The Bank of Ghana further indicated that all banks and SDIs across the country will be formally notified about the sanctions imposed on third-time offenders.
As part of the enforcement process, banks and SDIs are required to notify affected customers within five working days after receiving the ban notice from the Central Bank.
Financial institutions must also recall all unused cheque books from sanctioned customers and refrain from issuing new cheque books until the sanctions are lifted.
The notice further warns that customers who fail to surrender their unused cheque books within ten working days after notification may face additional sanctions, including a possible ban from operating current accounts altogether.
In addition, such individuals may be listed in a new “Directory of High-Risk Cheque Issuers” to be created by the Bank of Ghana.
The directory is expected to serve as a reference point for the Central Bank and the wider banking industry when assessing customer risk profiles.
The Central Bank also reiterated existing obligations for banks and SDIs to continue submitting data on customers who issue dud cheques to Credit Reference Bureaus in accordance with Section 25(c) of the Credit Reporting Act, 2007 (Act 726).
Furthermore, banks and SDIs are expected to submit monthly reports on dud cheque incidents to the Bank of Ghana no later than the 10th day of the following month.
Institutions must also submit “Nil Reports” for months in which no dud cheque cases are recorded.
The Bank cautioned that failure by any bank or SDI to submit accurate or complete reports will attract sanctions under Section 93 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
To ensure public awareness, all banks and SDIs have been directed to prominently display copies of the new notice in their banking halls and on their official websites.
The Central Bank stressed that any financial institution that fails to comply with the directives will face sanctions in accordance with Section 92(8) of Act 930.
The new directive takes immediate effect and officially supersedes previous notices issued on March 11, 2021, and October 14, 2025.
The Bank of Ghana says the measures are necessary to promote discipline in cheque issuance, strengthen financial accountability, and safeguard confidence in Ghana’s banking and payment systems.
By 1960news.com
