The Central Bank of Nigeria (CBN) has announced the extension of the deadline for the acceptance of legacy bank cheques to March 31, 2013.

The CBN had previously fixed a January 2, 2013 deadline and had vowed to sanction banks that failed to adhere to the directive.

A note from a commercial bank (name withheld) to its customers at the weekend explained that the extension implied that cheques from the affected financial institutions could still be presented for transactions and clearing.

The legacy banks includes Afribank, Bank Platinum Habib Bank (Bank PHB), FinBank , Equitorial Trust Bank, Oceanic Bank and Spring Bank.

The note stated: “The Central Bank of Nigeria (CBN) has announced the extension of the deadline for the acceptance of legacy bank cheques ( that is, those of Afribank Plc, Bank PHB Plc, FinBank Plc, ETB Bank Limited, Oceanic Bank Plc and Spring Bank Plc) to March 31, 2013. This implies that such cheques can still be presented for transactions and clearing.”

The aforementioned financial institutions were rescued by the apex bank in 2009. While some have since been acquired by local banks, three of them were ‘bridged’ and subsequently purchased by the Asset Management Corporation of Nigeria (AMCON) and three new banks were created from their carcass.

Specifically, while Mainstreet Bank Limited was created from Afribank, Keystone Bank Limited from Bank PHB, Enterprise Bank Limited evolved from the now defunct Spring Bank.

The CBN had last November, warned Deposit Money Banks (DMBs) to desist from presenting legacy/liquidated banks’ financial instruments for clearing and settlement in various Clearing Houses in the country.

The apex bank had given the warning in a circular titled: ‘Circular to Deposit Money Banks in Respect of Clearing of Financial Instruments of Liquidated/Legacy Banks,’ signed by the Director, Banking and Payment System Department, CBN, Mr. Dipo Fatokun, a copy of which was then posted on its website.

The circular, dated November 27, insisted that the development was unacceptable and should be discontinued forthwith.

It had said: “The CBN has noted with concern, the prevalence of legacy/liquidated banks’ financial instruments, being processed and cleared for settlement in the various Clearing Houses.

“This development is unacceptable and should be discontinued forthwith. The DMBs are advised to stop the issuance and circulation of legacy/liquidated banks’ financial instrument in our clearing system, particularly as we have migrated to NUBAN.”

Source: Thisday (written by Obinna Chima)