The Ghana Association of Banks (GAB) is demanding the publication of all businesses and individuals sanctioned by the Bank of Ghana (BoG) over the issuance of dud cheques.
The GAB has urged the BoG to publish the names in the national dailies.
According to the Association, this is one of the best ways to help restore confidence in the use of cheques as a favourable means of payment.
The Chief Executive of the GAB, John Awuah disclosed this on PM Express Business Edition with Host George Wiafe on August 8, 2024.
Mr. Awuah noted that, such punitive action will also go a long way to serve as a deterrent to others.
“So, if someone is your neighbour and has his or her name on this list that will ensure that they never go that way”, he said.
He disclosed that these individuals and businesses have persistently issued dud cheques over the years.
“It is not just a central bank directive, but it is actually in the Criminal Offenses Act. It’s a crime to issue dud cheques and this is so important because of the potential of taking away the trust in that instrument”, he stressed.
Background
The BoG on August 6, 2024, announced that it has imposed sanctions on 47 individuals and 245 business entities for issuing dud cheques.
According to BoG, the culprits issued dud cheques on at least three occasions between January 2022 and January 2024, despite warnings about the consequences of their actions.
The Bank of Ghana also announced that businesses and individuals are banned from issuing cheques in Ghana for three years, effective 28th June 2024.
It added that the offenders will also not be able to access new credit facilities from the banking system for three years with effect from 28th June 2024.
“The issuance of these dud cheques has the tendency of driving away a lot more people from accepting cheques as a medium of payment,” Mr. Awuah warned.
Commercial Banks on need to sanction firms and individuals
Providing some more insight, Mr. Awuah said banks are worried about the issuance of dud cheques and how it affects confidence in the payment ecosystem.
“Therefore, everything must be done to ensure that we don’t lose confidence in cheques as a mode of payment in the country”.
He added that a lot of businesses have lost money due to the practice.
“We will encourage any form of sanctions and actions on the part of the regulator to serve as a deterrent to others. The banks have also been affected. I believe that everything must be done to correct this challenge”.
Speaking on the same programme, the Chief Executive of the Association of Ghana Industries, Seth Twum Akwaboah was worried about the impact of the action on the operations of businesses, especially securing new credit from the bank for three years.
Source: Joy Business
READ ALSO: