Customers who issue dud cheques risk escalating penalties, including fines of up to 20% of the cheque’s value, a ban on issuing cheques and restrictions on accessing new credit facilities under revised guidelines issued by the Bank of Ghana (BoG).

The measures are contained in an official notice, Notice No. BG/GOV/SEC/2026/12, issued on June 24 and communicated to banks, Specialised Deposit-Taking Institutions (SDIs) and the public.

The BoG said the notice follows earlier measures introduced under Notice No. BG/GOV/SEC/2021/03 and Notice No. BG/GOV/SEC/2025/31 to discourage the issuance of dud cheques.

However, the central bank said it had observed “with grave concern the high issuance of dud cheques” by some customers of banks and SDIs.

“This development has consequential effects on the acceptance of cheques for transactions,” the BoG said, adding that the new measures are intended to “discourage this malpractice, and to sustain confidence in the payment system.”

First offence

Under the revised sanctions, a customer who issues a dud cheque for the first time will be charged 10% of the cheque’s face value by the bank or SDI.

The institution must also issue a warning notification to the customer on the consequences of repeating the offence.

The offence must be reported to the Credit Reference Bureaus (CRBs) and the BoG, while the customer will be placed under surveillance for a minimum period of one year.

The BoG said the warning may be communicated through SMS, email or any other established means of communication between the financial institution and the customer.

Second offence

Where a customer issues a dud cheque for the second time within one year of the first offence, the penalty increases to 15% of the cheque’s face value.

The bank or SDI must issue another warning to the customer and report the offence to the Credit Reference Bureaus and the BoG.

Third offence

A third dud cheque offence within one year of the first offence attracts a 20% levy on the cheque’s face value.

The offence must again be reported to the Credit Reference Bureaus and the central bank.

Beyond the financial penalty, the BoG will impose a minimum three-year ban on the customer from issuing cheques in Ghana.

The notice states that “the customer may, however, be permitted to receive cheques and funds into the affected account and perform other electronic transactions on the account.”

The customer will also be banned from accessing new credit facilities from the banking system for one year.

The BoG said it will notify all banks and SDIs of the ban.

Cheque books to be recalled

Upon receiving notification of the ban, the affected bank or SDI must notify the customer within five working days.

The bank must also recall all unused cheque books and must not issue new cheque books to the affected customer until the sanctions are lifted.

The BoG may also publish the list of customers who commit a third dud cheque offence.

Customers who fail to return their unused cheque books within 10 working days of being notified of the ban will be reported to the BoG.

The central bank may then ban such customers from operating any current account.

Their names may also be added to the Directory of High-Risk Cheque Issuers, which the BoG says will serve as a reference point for the central bank and the banking industry.

Notice-No.12-BOG-SEC-GOV-2026-Sanctions-for-the-Issuance-of-Dub-Cheques-1Download

Banks and SDIs face reporting obligations

The revised notice also requires banks and SDIs to continue submitting information on customers who issue dud cheques to Credit Reference Bureaus in accordance with Section 25(c) of the Credit Reporting Act, 2007 (Act 726).

They must also submit monthly returns on dud cheques to the BoG by the 10th day of the following month using the format prescribed by the central bank.

Financial institutions are required to submit a “Nil Report” for months in which no dud cheques are recorded.

The BoG warned that failure to submit the required returns, or submitting inaccurate or incomplete information, will attract sanctions under Section 93 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

Banks and SDIs have also been directed to conspicuously display copies of Notice No. BG/GOV/SEC/2026/12 in their banking halls and on their official websites.

The central bank said any bank or SDI that fails to comply with the directives will be sanctioned in accordance with Section 92(8) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).