The Bank of Ghana (BoG) has cautioned customers against issuing dud cheques, warning that individuals who write cheques without sufficient funds could face financial penalties, negative credit reports and restrictions on access to banking and credit services.
The central bank issued the warning in a financial literacy notice on Monday, September 7, 2026, explaining the penalties and other consequences associated with issuing cheques that cannot be honoured.
What Is a Dud Cheque?
According to the Bank of Ghana, a dud cheque is a cheque issued from a customer’s bank account when there are insufficient funds available to cover the amount stated on the cheque.
The BoG urged bank customers to properly manage their finances and ensure that adequate funds are available in their accounts before issuing cheques.
Penalty for First Dud Cheque
Under the applicable banking regulations, a customer who issues a dud cheque for the first time will be required to pay a penalty equivalent to 10% of the face value of the cheque.
The customer will also receive a warning notification explaining the consequences of committing the offence again.
The Bank of Ghana said the offence will be reported to both the Credit Reference Bureaus and the central bank.
Second Offence Attracts 15% Penalty
A second dud cheque issued within one year of the first offence attracts a higher penalty of 15% of the cheque’s face value.
The customer will again receive a warning, while the offence will be reported to the Credit Reference Bureaus and the Bank of Ghana.
Third Dud Cheque Could Lead to Banking Restrictions
The penalties become more severe when a customer issues a third dud cheque within one year of the first offence.
The BoG said the third offence attracts a levy of 20% of the face value of the cheque.
In addition to the financial penalty, the customer may be prohibited from issuing cheques for a minimum of three years and barred from accessing new credit facilities from the banking system for one year.
The Bank of Ghana will subsequently notify all banks and Specialised Deposit-Taking Institutions (SDIs) about the restriction.
Dud Cheques Can Affect Creditworthiness
The central bank also warned that being reported to the Credit Reference Bureaus could negatively affect a customer’s creditworthiness.
An adverse credit report may make it more difficult for an individual to obtain loans and other credit facilities in the future. It could also result in credit becoming more expensive for the affected customer.
Banks Must Recall Unused Cheque Books
Once a customer is notified of the ban, the customer’s bank is required to inform the individual within five working days.
The bank must also recall all unused cheque books and is prohibited from issuing new cheque books to the customer until the restriction has been lifted.
Customers affected by the ban are required to return unused cheque books within 10 working days after receiving notification.
The Bank of Ghana warned that failure to comply could result in the matter being reported to the central bank.
The BoG may subsequently impose further restrictions, including a possible ban on the individual from operating any current account.
The customer’s name may also be added to the Bank of Ghana’s Directory of High-Risk Cheque Issuers.
Bank of Ghana Urges Customers to Plan Their Finances
The Bank of Ghana has urged the public to adopt responsible financial management and proper financial planning to avoid the consequences associated with dud cheques.
Customers are encouraged to check their account balances and ensure that sufficient funds are available before issuing cheques.
The warning forms part of the central bank’s broader financial literacy and consumer protection efforts, aimed at promoting responsible banking practices and protecting the integrity of Ghana’s financial system.
Source: newsthemegh.com