By Our Correspondent

Tuesday, 21 Dec 2010

The Branch Controller, Central Bank of Nigeria, Abuja, Mr. John Chukwudifu, has said that the directive by the CBN, placing a limit of N10m on cheque clearing, has reduced fraud and malpractices in the banking system.

Speaking in Abuja during the Federal Capital Territory Bankers‘ dinner/awards, he said the branch was recognising the performance of banks in the Abuja clearing zone as a means of encouraging and reinforcing collaborative attitudes in operational relationships.

He said, ”The clearing cycle for local and up-country cheques remains T-2. The Federal Government‘s policy on e-payment and the limit of N10m placed on the value of clearing cheques have worked together to reduce fraud and malpractices in the banking system.”

A breakdown of the zone‘s performance revealed that a total of 3.96 million financial instruments valued at N2.56bn passed through the clearing house as at December 3, 2010, as against 1.98 million cheques, valued at N2.91bn, cleared in 2009.

In the award categories, Oceanic Bank came first in accuracy in data transmission followed by Afribank while Access Bank came third. Oceanic Bank also came top in punctuality in clearing followed by Union Bank of Nigeria Plc and GTBank Plc respectively.

Speaking on loan facilities extended to operators in the agriculture sector by the branch, he said that Union Bank of Nigeria Plc gave out 246 loans valued at N72.09m while First Bank of Nigeria Plc gave out 16 loans valued at N8.3m.

Source: Punch