N150000 cheque cashing limit for third parties

Posted by Felix Okoli on Monday June 24, 2013 at 11:20:45:

There is a new policy for cashing cheques now in Nigerian banks as the CBN has reviewed it and the limit for cashing a cheque across the counter of any bank has been set at N150,000 for third parties. This is to take effect as from the 1st of June 2013.

Already, it seems some banks have already started obeying the directive but I'm not really sure how it works precisely just yet.

I went to a bank some days ago and noticed man trying to cash cheques another company issued to him but he could not do so across the counter as he was told that there is a new policy.

What the encashment limit for cheques means is that no individual or company may cash cheques across the counter above N150,000 which has been issued to them from another party. The person may however pay the cheque into their bank account for forward clearing and that takes a few days or so.

This policy as noted only applies to 3rd party cheques and not personal cheques and so I guess individual cheques written against one's account can be cashed above the said limit for 3rd party ones.

This means that you can still cash cheques across the counter but it has to be less than or equal to the N150,000 limit placed by the CBN. Also the CBN has ordered all banks that charge their customers for cashing cheques below N150,000 to stop doing so henceforth.