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Dud cheque issuers face 1-year credit ban under new BoG rules

 Dud cheque, BoG

Customers who repeatedly issue dud cheques risk being barred from accessing fresh credit from banks and financial institutions for one year under the Bank of Ghana's (BoG) revised rules.

They will also be prohibited from issuing cheques for at least three years if they are classified as repeat offenders.

The sanctions apply to customers who issue dud cheques for a third time.

The BoG announced the revised measures in a Dud Cheque Notice issued on September 7, 2026.

Under the new framework, repeat offenders will also be charged a levy equivalent to 20% of the face value of the dud cheque.

The central bank said it will notify all banks and Specialised Deposit-Taking Institutions (SDIs) when a customer is banned from accessing new credit.

For a first offence, banks and SDIs are required to impose a levy of 10% of the face value of the dud cheque.

The financial institution must also issue a warning to the customer outlining the consequences of repeating the offence.

The offence must further be reported to the Credit Reference Bureaus and the Bank of Ghana.

For a second offence within one year of the first, the levy increases to 15% of the cheque’s face value.

The bank or SDI must again issue a warning to the customer and report the offence to the Credit Reference Bureaus and the Bank of Ghana.

The BoG has also reminded banks and SDIs to continue submitting information on customers who issue dud cheques to Credit Reference Bureaus in accordance with Section 25(c) of the Credit Reporting Act, 2007 (Act 726).

Banks and SDIs are required to submit monthly returns on dud cheques to the BoG by the 10th day of the following month.

Institutions must also submit a nil return in months when no dud cheques are recorded.

The central bank said the revised directive became necessary because the practice of issuing dud cheques continues despite earlier warnings.

According to the BoG, the practice has undermined public confidence in cheques as a means of payment.

The revised measures are therefore aimed at addressing the problem and restoring confidence in the payment system.

The BoG defines a dud cheque as “a cheque drawn on an account by a customer for which there are insufficient funds to pay the amount specified on the cheque.”

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