how to write a cheque in nigeria

You will be surprised to know, how many actually forget to write the date, at times the correct date. Not to mention that banks charge a few hundred rupees as a fine, for cheques that get bounced due to non-financial reasons. Some even write it as “A/C payee”. thus make it more attractive to users, as an alternative means of payments, instead of transacting in cash. I wouldnt send a cheque, the fees will probabaly more than the cheque is worth. It’s possible that you’ve been paid with a fake cheque. For example, you could write "Jonathan Peters" or "Mr. J. Then they could withdraw it very easily and for free if they use online banking. Depositing a cheque to a receiving account ===== One can also deposit a cheque into a receiving bank account which bears the same name as the name written on the cheque. Write the Name of the Payee The next line of the cheque below the date line starts with the printed word "Pay." On this line, write the payee's name with enough detail to identify him. A Cheque is an instrument which is payable on demand. Write the amount on the Cheque Next to the word ‘Rs’ The amount should always be mentioned in the rectangular box next to the printed word “Rs” along with the rupee symbol. Bearer beware: If you are addressing a cheque to a person in particular, write the name accordingly. It is not just filling in the details, but how you actually fill the details on the cheque that matters, according to a report by www.firstpost. This will help ensure that no one can add any number to your amount and withdraw much more. A friend of mine is temporarily staying in abeokuta, nigeria and has a US employer. Three hundred and fifty and 45/100 pounds. When a foreign cheque is paid by negotiation, your bank will quickly credit your account with the cheque funds, typically within a few days. So when you write a cheque, you are agreeing to pay another individual or organization money that you owe them and you are instructing your bank to make that payment. For instance, if you want the amount to be N5,000 don’t leave space before the number 5000 or anyone can simply add the number 3 before the number 5000 and make it 35000. Example. It can be2. Especially Zenith bank. Make sure the mentioned digits are preserved within the box. by Guarantor(m): 6:51pm On Dec 09, 2010; Yes, provided the Beneficiary has a Domicilliary account and the name on the cheque correspond with the name of the domicilliary account. Step 4: Follow the instructions on the screen and track your cheque book request. If that amount is different from the numeric form that you entered in the previous step, the amount you wrote with words will legally be the amount of your check. Amount in Numbers – How to write a cheque To evaluate rules and performance of cheque clearing system in Nigeria. If you plan to give a post-dated cheque ensure you give the right date. Payee: On the line that says “Pay to the order of”, write the name of the person or organisation you’re paying. Some even write it as “A/C payee”. Like it or not, many don’t write cheques properly. This is a secure practice so as to prevent any type of exploitation with the cheque. If using option 1, you would have to write the person's/beneficiary's name on the cheque e.g. A cheque must bear the date, otherwise, it will be considered invalid. Memo (or “For”) line: Include a note, if you like – this is an optional step. Welcome to INCOME NIGERIA, Are you interested in articles about How to Check all Bank Account Number in Nigeria, this post contains all the necessary details on the best way to Check Bank Account Number in Nigeria.. How to Check your Bank Account Number in Nigeria. Keep in mind that when you cross a cheque, the funds reach the account of the person, and cannot be encashed at a branch counter. Writing a cheque to withdraw out of your account is quite simple. If you don’t cancel the word bearer and your cheque gets lost, it is an invitation to risk of fraud. Read also: Introducing the revised Nigerian cheque standard This was in view to adopting a better and far suitable approach to the use of cheque book in a broader sense. You'd also have to sign the cheque with your usual signature. Figures: Also when it comes to writing the amount, do not leave space. You should start as far over to the left as possible. Same applies when you write the amount in words. 5.2.2 Crossing All cheques received over the bank’s counters for the purpose of clearing are required to be branded with the bank’s special crossing and presentation stamp prior to scanning. A cheque is an agreement of payment between two individuals or organizations. Login to Federal Government of Nigeria Single Window for Trade Portal to Process Form M. Now you are ready to start processing your Form M. I would rather display the steps as images with few write-ups as directions to give it a more practical look it rightly deserves. Use all capital letters, which are harder to alter. These are a few things to keep in mind while writing a cheque. We probably have like 4 to 5 bank accounts with different banks in Nigeria … of the initiative will reduce the Cheque clearing cycle from T+2 to T+1, and. Other details you'd need to fill in are the amount in words and figures as well as the date. Write the Full Name of the payee as per the payee's bank records on the Pay line. If both accounts are at the same bank, most places have a form you can fill out to do it Write another check to "Petty Cash" for the total can i write a cheque to myself and cash it amount of the expenditures. My friend not knowing this, booked a flight back to US and could only partially pay for it. Keep tracking this space for more info on cheques. The Central Bank of Nigeria (CBN)’s move to reduce the settlement cycle of a cheque in Nigeria to one day, also known as cheque truncation system, has now taken off across the country. specified in the Nigeria Cheque Standard. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH. After the printed word “payee” on the cheque, write the name of the person/entity to whom you want to give the cheque. A person can issue a cheque only against saving and current accounts. A Cheque can only be encashed by the payee whose name is mentioned on the cheque. Gaps: It is good to give people space. To start an NGO, you need to devise a plan, write about your organization’s beliefs, mission, and purpose. All rights reserved. If you randomly fill in the cheque details, you might just miss filling something. Box: In the box where you have to write the amount in numbers, ensure you write in the correct manner. You may have to ask “Who do I make the cheque out to?” if you’re not sure what to write. Five thousand can be easily be made into 35,000, if you leave space before the word five. Just recently, the Central of Nigeria modified certain features in the use of cheque book as a financial instrument in Nigeria. the scheme in Nigeria. It’s easy to do. You may be able to cash the cheque there instantly – which eliminates the chances of the cheque bouncing. Cancel the words ‘OR BEARER’ and Add ‘A/C Payee’ to the Top Left corner of the cheque: Cancelling the words ‘Or Bearer’ and adding ‘A/C Payee’ to the top as shown in the image will make sure that no one apart from the person in whose favour the cheque is drawn can get the money. If you want the cheque to be cleared right away, write the current date. 1.5 STATEMENT OF HYPOTHESIS There are 2 Google Adsense payment options available to Nigerian publishers, these are Bank Cheque and Wire Transfer. CENTRAL BANK OF NIGERIA, ABUJA www.cbn.gov.ng REQUEST FOR PROPOSAL (RFP) TO REVIEW THE NIGERIAN CHEQUE STANDARDS 1.0 Introduction The Central Bank of Nigeria, in collaboration with the Bankers Committee, introduced a codified cheque standard and a Cheque Printers Accreditation Scheme in 2006, to facilitate an efficient Always move from left to right: While it is not necessary to move from left to right direction, it just helps your cheque writing task, some method. If by mistake you put in a prior date and there are no sufficient funds in your account, your cheque might bounce. Amount (in words): Write out the amount using words to avoid fraud and confusion. Also remember that going forward; you will need to use darker ink to sign the cheque. The account number of the drawer is stated. Ensures that no one adds another digit to the amount. It is addressed by one person to another. And, that could lead to bouncing of cheque due to non-financial reasons. The following is a guide on how to start an NGO or registering a Foundation in Nigeria. Keep in mind that unless you are addressing the cheque to a particular person, cancel the printed word “bearer” from the cheque. After writing the full amount make sure you put the words pounds and only after the amount. Our finding is that conditions are appropriate for the. Cross: If you want the cheque to be encashed over the counter in any branch of your bank, do not cross the cheque. Generally, a cheque book will be dispatched to your mailing address as available in … Sign the cheque above your name, which is printed on the cheque. The name of the payee must be shown on the cheque. An NGO is deemed a not-for-profit organization in Nigeria. 5%, 5% or 10% depending on the the type of transaction and the tax authority responsible for the collection of the tax (Federal Inland Revenue Service or State Inland Revenue Service). 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For utility payments to go-live in the cheque payment between two individuals or organizations 's., anyone who presents ( bears ) the cheque with your usual signature 1 like Re. This line, write the name of the payee must be shown on the cheque they are conforms. You will use today ’ s convenient, but risky addition, writing the full amount that you along. To be cleared right away, write the person's/beneficiary 's name on the cheque in front of the the...