The Problem Statement
In the age of internet banking, businesses across Nigeria use cheques, including postdated ones to make and receive payment from vendors, suppliers, and customers. In some cases, such cheques bounce and sometimes invalid and the matter ends up in court. This and so many reasons led to the amendment of the dishonored cheques bill.
The Policy Solution
The policy aims to reduce delays and resolution of cheque and bounced cases, address the loopholes in the existing act, and to reveal the penalties, considering the present economic realities by making it stiffer so as to serve as deterrence to prospective offenders, compensate the complainant by asking the drawer of a cheque that has been dishonored to pay interim, reduce the practice of presenting a cheque for payment when the drawer has insufficient funds in his or her account, increase the credibility of cheques in the business world, address cases of bounced/dude cheques in the businesses, authenticate the credibility of cheques received by vendors and suppliers in the world of businesses and stock exchange market and to reduce unauthorized or agreed cheque by the drawer with the drawee.
NIGAC Constructive Position/Take
It should be mandated that every drawer of a cheque that has been dishonored should pay interim compensation to the plaintiff and 25 percent of the amount of cheque that was dishonored should be compensated. A summary trial should be made for the interim compensation to be paid by the drawer of the dishonored cheque and Interim compensation should be paid within 60days from the date of the order and if the court is satisfied, it can grant an extension of further 30 days but not beyond that.
The complainant should be paid interim compensation with interest, and payment has to be within the speculated date and a drawee who fails to comply with the provision should be fine sum total amount of money. Fining should be based on the size of the company, it shouldn’t be based on a flat rate.
In conclusion, the amendment of this act will help to reduce cheque bounce cases which will help businesses, marketers, and the stock exchange market at large. It will also help to checkmate postdated cheques and reduce the use of stale cheques. However, the amendment will curtail the practice of the drawer of a cheque exceeding the authorized or agreed on sum by the drawer with the drawee.