Individuals and institutions that issue cheques without sufficient funds in their accounts could face tougher sanctions under new rules introduced by the Bank of Ghana (BoG).

The rules, which took effect on June 24, 2026, are aimed at addressing the growing problem of dud cheques issued by customers of banks and Specialised Deposit-Taking Institutions.

A dud cheque is a cheque that a bank cannot honour because there are insufficient funds in the account.

Under the new rules, customers who issue dud cheques three times within 12 months could be banned from issuing cheques in Ghana for at least three years.

How to check if a cedi note is genuine

What happens the first time?

For a first offence, the bank will charge a penalty of 10% of the face value of the cheque.

The bank must also issue a warning notification explaining the consequences of issuing another dud cheque. The offence will be reported to both the Bank of Ghana and Credit Reference Bureaus.

What if it happens again?

If the same person issues another dud cheque within one year of the first offence, the penalty increases to 15% of the cheque’s value.

The second offence will also be reported to the Bank of Ghana and Credit Reference Bureaus, alongside another warning about the consequences of repeating the offence.

The third offence carries tougher sanctions

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

However, the financial penalty is only part of the punishment.

The Bank of Ghana can ban the person from issuing cheques for at least three years and prevent them from accessing new credit facilities from the banking system for one year.

The ban will be communicated to banks and Specialised Deposit-Taking Institutions.

What happens to the cheque books?

Banks will also be required to recall all unused cheque books once a ban is imposed and will not be allowed to issue new ones until the sanctions are lifted.

Ghana's domestic debt rises by GH¢57 billion in six months

However, the affected account will not automatically be closed. Customers can still receive money and carry out electronic transactions.

The BoG has urged customers to check their account balances before issuing cheques and take pending payments into account to avoid issuing cheques they cannot cover.

The central bank said the measures are intended to restore confidence in cheque payments and discourage the practice of issuing cheques without sufficient funds.

DR/MA

Banks see poultry investment as risky, prefer bonds and Treasury bills – Ohenewaa Sakyi-Bekoe