The Bank of Ghana (BOG) has continued its financial literacy education as it enlightens the public on Dud Cheques in its latest slides.
According to the Bank of Ghana, it is an offence punishable by a fine and/or imprisonment of up to five (5) years to issue a dud cheque. As such, the BoG encourages all account holders “to always ensure there is enough funds in your account before you issue a cheque”.
Issuing a dud cheque for the first time will not attract any sanctions or punishment but the issuer will be placed under monitoring by their financial institution.
However, the financial institution is mandated to report customers who issue dud cheque twice within three years of the first offence to the Central Bank. In its dud cheque register, the Central Bank will maintain the customer’s details and keep a record of the breach.
“If you issue a dud cheque for the first time, your financial institution will warn you and also report the offence to the credit reference bureau. Your financial institution shall place you under surveillance for a minimum period of three (3) years when you issue a dud cheque for the first time”.
Bank of Ghana
Punishment for issuing a dud cheque
According to the BoG, your grace period will elapse If you issue a dud cheque for a third time within three (3) years. This time, “you will be BANNED from issuing cheques within the country for a minimum period of 3 years”.
In addition to the prohibition of issuing cheques, culprits will not have the chance to obtain loans from any financial institution in the country within that period.
“You shall be BANNED from accessing new credit facilities from all financial institutions for a period of three (3) years if you issue a dud cheque for the third time within 3 years”.
Bank of Ghana
In a nutshell, BoG said: “Beware! Your name shall be published in two daily newspapers of national circulation if you issue a dud cheque for the third time within 3 years”.
The Bank of Ghana continues to play a significant role in financial literacy education in the country. This is because, as the country works towards promoting financial inclusion, basic knowledge in financial management skills as well as the general operations of the financial system is vital.
Financial literacy education
Earlier, the BOG provided an extensive public education on dormant accounts in its 8TH INFOGRAPHICS SERIES SLIDES. The BOG stated that an account becomes dormant after two years of inactivity. This means that for two whole years, the holder of such an account has neither deposited nor withdrawn money from it. As such, the Bank of Ghana has urged people whose accounts have been idle for some time now to reactivate them.
The Bank of Ghana clarified that customers who allow their accounts to go dormant will not earn any interest on them. Likewise, financial institutions will not levy any charge on such dormant accounts.
Another area the BoG has covered in its financial literacy is the operations of Forex Bureaux. A key highlight of that series was that, it is unlawful for any person or business to engage in the business of buying and selling of foreign currency without a license from the Central Bank. Consequently, the BOG stated emphatically that it “is punishable upon summary conviction, by a fine or a prison term of not more than eighteen months, or both”.
“It is prohibited by law to buy or sell foreign currency to or from an unlicensed person or entity. Report such illegal activities to the Financial Stability Department of Bank of Ghana”.
Bank of Ghana
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