The Central Bank of Nigeria (CBN) announced that it will start penalising deposit money banks (DMBs) whose equipment distorts images and data during the cheque truncation process on November 1, 2023.
The move aims to reduce the reported increase in Magnetic Ink Character Recognition (MICR) failures in banks.
The CBN advised DMBs to ensure their in-house cheque processing equipment is properly calibrated and supervised.
Additionally, DMBs were directed to contact their personalisers to revalidate the MICR codeline details for correctness in line with the Nigeria Cheque Standards (NCS) and Nigeria Cheque Printers Accreditation Scheme (NICPAS) version 2.0.
The circular was signed by the Director of the Banking Services Department, Mr Sam Okojere.
“It has come to our notice that MICR rejects have been on the increase, and in furtherance of the bank’s effort to reduce the number, Deposit Money Banks (DMBs) are hereby directed to contact their personalisers and reiterate the need to revalidate the MICR codeline details for correctness in accordance with the NCS and NICPAS version 2.0.
“Furthermore, both the presenting and receiving banks should also thoroughly examine their in-house check processing equipment to ensure that it is properly calibrated and supervised to eliminate distortion of images and data being transmitted during the check truncation process.
“Note that the bank will monitor compliance with the provisions of this circular, and any bank with MICR rejection starting on November 1, 2023, will be penalised in accordance with the sanctions grid. Please be guided accordingly.”
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