What is the penalty for dud cheque in Nigeria?
two years imprisonment
The penalty for the offence of issuance of dud cheque is a sentence of two years imprisonment with an option of fine but in the case of a body corporate a fine of not less than N 5,000.
How do banks handle dud cheques?
A bank or SDI shall issue a Warning Notification to a customer who issues a dud cheque for the first time and report the offence to the credit reference bureaux. The bank shall place the customer under surveillance for a minimum period of three (3) years.
What is d meaning of dud cheque?
A “Dud” cheque is when you issue a cheque whose amount is more than the actual funds in your account. banks are required to issue a warning notification to customers who issue dud cheques for the first time.
What is meaning of cheque Dishonoured?
Dishonoured cheques (also spelled check) are cheques that a bank on which is drawn declines to pay (“honour”). If there are funds in an account, but insufficient cleared funds, the cheque is normally endorsed “Present again”, by which time the funds should have cleared.
What is the punishment for bounced cheque?
The punishment for cheque bounce is imprisonment for a term not more than two years or a fine that can extend to twice the amount of the cheque or both. A civil suit can also be instituted against the drawer for payment of the cheque amount.
What is the penalty for issuing a bouncing check?
In any of these cases, the issuer of the check commits a violation of BP 22, and may be held liable for imprisonment of thirty days to one year or a fine a double the value of the check or both at the discretion of the court.
What happens to a stale cheque?
While a stale-dated check is not necessarily invalid, banks may deem it an “irregular” bill of exchange and refuse to honor it. At this point, the only way to process the payment is if the drawer — otherwise known as the check writer or issuer — changes the date on a replacement check or issues a new check.
What are the kinds of cheque?
The ten types of cheques include:
- Bearer Cheque. A bearer cheque is the type of cheque that allows the person bearing or carrying the cheque to the bank to receive the payment specified on the cheque.
- Order cheque.
- Crossed cheque.
- Open cheque.
- Post-dated cheque.
- Stale cheque.
- Traveller’s cheque.
- Self cheque.
Who is a dud person?
noun. a person or thing that proves ineffectual or a failure. a shell, etc, that fails to explode.
Why might a cheque be Dishonoured?
Why are cheques dishonoured by bank? Cheques are dishonoured by the bank if there are insufficient funds, a signature mismatch, overwriting or a stale date.
Can dishonoured cheque presented again?
Answer: Yes, you can present the cheque again in the bank for payment, even if it was dishonoured on the first occasion. However, it goes without saying that the cheque can be presented again in the bank only during the period of its validity. Normally, the period of validity of the cheque is 3 months.