By Grace Zigah
The Bank of Ghana (BoG) has strengthened its campaign against the issuance of dud cheques by introducing tougher sanctions, including a three-year ban on issuing new cheques for customers who repeatedly write cheques without sufficient funds.
The revised regulatory directive, issued on June 24, 2026, is aimed at restoring public confidence in cheque transactions and improving discipline within the payment system following a continued rise in dishonoured cheques despite previous regulatory interventions.
Under the new rules, customers who become third-time offenders will be prohibited from issuing fresh cheques for three years and will also be denied access to new credit facilities across the country’s banking and financial system.
The central bank explained that although affected customers would be barred from using cheques and accessing new loans during the sanction period, they would still be permitted to receive deposits into their accounts and conduct other electronic banking transactions.
To ensure effective implementation, the Bank of Ghana said all banks and Specialised Deposit-Taking Institutions (SDIs) would be formally notified whenever a customer is placed under the three-year ban.
Financial institutions have also been directed to notify affected customers within five working days after receiving the Bank’s notification and immediately recall all unused cheque books issued to the sanctioned customer.
In another significant measure intended to deter repeat offenders, the Bank of Ghana announced that the names of customers who issue dud cheques for the third time will be published.
Customers who fail to return their unused cheque books within ten working days after notification will face additional sanctions, including restrictions on operating current accounts and placement on a high-risk list of cheque issuers to be maintained by the central bank.
The revised directive replaces earlier guidelines issued in March 2021 and October 2025.
According to the Bank of Ghana, the tougher measures became necessary because previous directives had failed to significantly reduce the persistent issuance of dud cheques within the banking system.
“The Bank has observed with grave concern the high issuance of dud cheques by some customers of Banks and Specialised Deposit-Taking Institutions,” the regulator stated.
It warned that the growing incidence of dishonoured cheques continues to undermine public confidence in cheques as a reliable means of payment, threatening the integrity and efficiency of the payment system.
To strengthen enforcement, the Bank of Ghana has introduced a graduated sanctions regime for offenders.
Customers who issue a dud cheque for the first time will pay a penalty equivalent to 10 percent of the face value of the dishonoured cheque.
They will also receive a formal warning through SMS, email or any other communication channel agreed upon with their bank.
In addition, the offence will be reported to both the Credit Reference Bureaus and the Bank of Ghana, while the customer will remain under surveillance for at least one year.
The warning notification will also outline the harsher penalties that apply should the customer repeat the offence.
Where a customer issues another dud cheque within one year of the first offence, banks and SDIs are required to impose a higher penalty of 15 percent of the cheque’s face value, accompanied by another formal warning.
The Bank of Ghana has also reminded financial institutions of their statutory obligations under the Credit Reporting Act, 2007 (Act 726), requiring them to report all customers who issue dishonoured cheques to licensed Credit Reference Bureaus.
Furthermore, banks and SDIs must submit monthly reports on all dud cheque incidents to the Bank of Ghana by the 10th day of every succeeding month using the prescribed reporting format.
Even where no dud cheque is recorded during a particular month, institutions are required to submit a nil return.
The central bank warned that any bank or specialised deposit-taking institution that fails to submit the required reports, or submits inaccurate or incomplete information, will face sanctions under Section 93 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
