Dud cheque issuers face 1-year credit ban under new BoG rules
Customers who repeatedly issue dud cheques risk being barred from accessing fresh credit from banks and financial institutions for one year under the Bank of Ghana's (BoG) revised rules.
The Bank of Ghana (BoG) has implemented new rules to combat the issuance of dud cheques, imposing a one-year credit ban on customers who commit this offense for the third time. Repeat offenders will be barred from accessing fresh credit from banks and financial institutions for a full year, and prohibited from issuing cheques for at least three years.
The severity of the sanctions escalates with each subsequent offense, with the third infraction resulting in a two-year ban on issuing cheques and a 20% levy equivalent to the cheque's face value.
Announced on September 7, 2026, through a Dud Cheque Notice, the revised measures aim to restore public confidence in the payment system, which had been undermined by the continued use of dud cheques. The BoG defines a dud cheque as one drawn on an account where insufficient funds are available to cover the specified amount. For a first offense, banks and Specialized Deposit-Taking Institutions (SDIs) must impose a 10% levy of the cheque's face value and issue a warning to the customer about the consequences of repeating the offense. This warning must also be reported to Credit Reference Bureaus and the BoG.
In the event of a second offense within one year of the first, the levy increases to 15% of the cheque's face value, with an additional warning and reporting requirements. The BoG has emphasized that these revised rules are necessary because the practice of issuing dud cheques persists despite previous warnings. By implementing these sanctions, the central bank seeks to address the issue and restore confidence in cheques as a means of payment.
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