Ghana’s banking industry recorded a marked improvement in cheque discipline in 2024, with the issuance of dud cheques declining by 15.19 percent year-on-year, according to the latest Credit Reporting Activity report released by the Bank of Ghana (BoG).
A total of 45,136 dud cheques were reported to credit bureaus by banks and Specialised Deposit-Taking Institutions (SDTIs) last year down from 53,522 in 2023. The central bank attributed the decline to its intensified public education campaigns and stringent enforcement efforts targeting cheque misuse.
“A dud cheque is not just a bounced paper it is a criminal offense under the Bank of Ghana Act,” the BoG stated, underscoring the legal gravity of issuing cheques without sufficient funds.
Public Education Yields Results
The central bank credited the progress to sustained public sensitisation on the negative implications of issuing dud cheques, particularly their adverse effect on an individual’s ability to access credit.
“Our constant sensitization of the public on the negative implications of issuing dud cheques on their ability to secure credit facilities has contributed immensely to the reduction,” the BoG noted in the report.
The regulator said it would continue to deepen awareness and enforce compliance to maintain trust and reliability in Ghana’s cheque system.
Breakdown: Individuals vs Corporates
A closer look at the data reveals a significant decline in both individual and corporate violations. Dud cheques issued by individual customers dropped from 10,655 in 2023 to 4,972 in 2024 a reduction of over 53 percent.
Corporate entities also showed improved compliance, with total dud cheques falling from 42,867 in 2023 to 14,454 in 2024. This represents a dramatic year-on-year decline of 66.3 percent among business account holders.
Strengthening the Credit Reporting Landscape
The drop in cheque infractions is part of a broader improvement in Ghana’s credit information ecosystem. The BoG report pointed to increased utilisation of credit reports, enhanced stakeholder collaboration, and stronger regulatory oversight as key enablers of sector resilience.
“The notable reduction in dud cheque incidents, increased usage of credit reports by financial institutions and other lenders, and enhanced public awareness of credit reporting systems are testaments to the growing robustness of the sector,” the report stated.
BoG reaffirmed its commitment to further strengthening credit infrastructure through tighter enforcement, expanded public education, and continuous engagement with financial institutions.
“These efforts are essential to fostering compliance with credit reporting requirements through continuous stakeholder collaboration,” it concluded.
