As part of the efforts to clamp down on the menace of dud cheques in Ghana’s financial system, the Bank of Ghana (BoG) has sent a strong warning to banks and Specialized Deposit-Taking Institutions (SDIs) that failure to comply with its new directives on dud cheques will attract severe sanctions.
The latest central bank’s notice, titled BG/GOV/SEC/2025/10, emphasizes the regulator’s resolve to restore integrity and discipline in the use of cheques within Ghana’s financial system.
While the directives cautions customers to be wary in the issuance of cheques, it places a greater responsibility on the banks and SDIs to adhere to strict directives to aid the BoG’s agenda.
Under the new guidelines, all banks and SDIs are required to submit monthly reports on dud cheques to the BoG by the 10th day of the following month.
These reports must be submitted in the prescribed format, and institutions that record no dud cheques must still file a “Nil report.”
The BoG made it clear that any institution that fails to submit the required returns or submits incomplete or inaccurate data, will face sanctions under Section 93 of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).
The directive also requires banks and SDIs to continue submitting data on customers who issue dud cheques to licensed credit reference bureaus. This is in line with Section 25(c) of the Credit Reporting Act, 2007 (Act 726).
By doing so, the BoG hopes to create a reliable database of serial offenders, allowing financial institutions to identify and manage risky customers before they cause further damage.
“A bank or SDI which fails to comply with these directives shall be sanctioned in accordance with section 92(8) of the Banks and Specialised Deposit-Taking Institutions Act 2016, (Act 930),” the notice cited by The High Street Journal cautioned.
It is expected that this measure could serve as a deterrent to individuals and businesses who deliberately issue dud cheques, a practice that undermines trust in the financial system and causes financial losses to victims.
The BoG has further instructed all banks and SDIs to conspicuously display copies of the new directive in their banking halls and on their official websites. This will ensure that customers are fully aware of the new rules and the potential consequences of issuing dud cheques.
The central bank stressed that any institution that ignores this instruction will face additional penalties under Section 92(8) of the same Act.
The new dud cheque directive extends that reform effort to the payment system, emphasizing responsibility, record-keeping, and transparency.
Financial analysts say the directive also aims to rebuild confidence in cheque transactions by tightening the loopholes around financial institutions. The BoG is hoping to restore discipline in Ghana’s banking system and ensure that cheque transactions once again become a symbol of trust, not betrayal.
