The Ghana Association of Banks (GAB) is calling for the Bank of Ghana (BoG) to release the names of businesses and individuals penalized for issuing dud cheques.The GAB has urged the BoG to publish these names in national newspapers.The association believes that this measure will significantly contribute to restoring trust in cheques as a reliable payment method.

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John Awuah, the Chief Executive of GAB, shared this on PM Express Business Edition with host George Wiafe on August 8, 2024.Mr. Awuah also emphasized that such penalties would serve as a strong deterrent to others.“So, if someone is your neighbor and has his or her name on this list that will ensure that they never go that way”, he said.He revealed that these individuals and businesses have repeatedly issued dud cheques over the years.

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“It is not just a central bank directive, but it actually in the Criminal Offenses Act. It’s a crime to issue dud cheques and this is so important because of the potential of taken away the trust in that instrument”, he stressed.BackgroundOn August 6, 2024, the BoG announced that it has sanctioned 47 individuals and 245 businesses for repeatedly issuing dud cheques.

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According to the BoG, these offenders issued dud cheques at least three times between January 2022 and January 2024, despite being warned about the potential consequences.The Bank of Ghana also stated that these businesses and individuals are prohibited from issuing cheques in Ghana for a period of three years, starting from June 28, 2024.

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Additionally, the offenders will be unable to access new credit facilities from the banking system for three years, effective June 28, 2024.“The issuance of these dud cheques, has the tendency of driving away a lot more people from accepting cheques as a medium of payment,”  Mr. Awuah warned.Commercial Banks on need to sanction firms and individualsMr.

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Awuah elaborated that banks are troubled by the recurring issuance of dud cheques and the effect it has on confidence in the payment system.“Therefore, everything must be done to ensure that we don’t lose confidence in cheques as a mode of payment in the country”.He added that a lot of businesses have lost money due to the practice.

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“We will encourage any form of sanctions and actions on the part of the regulator to serve as a deterrent to others. The banks have also been affected. I believe that everything must be done to correct this challenge”.

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Speaking on the same programme, the Chief Executive of the Association of Ghana Industries, Seth Twum Akwaboah was worried about the impact of the action on the operations of businesses, especially securing new credit from the bank for three years.

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