A BIRD'S EYE VIEW OF BANKERS’ OBLIGATION TO HONOUR CUSTOMERS’ CHEQUES

Banks are global phenomena. They have grown into and remained institutions for savings and provision of financial cushion. Savings are necessary pre-requisites for investment. In its unique role banks intermediate between surplus and deficit economic variables. It has overtime developed into an effective economic machinery for the allocation of funds for investment. It is the fulcrum of the money-market and the bedrock of any vibrant economy. Consequently when there are hiccups in the banking subsector, the entire economy is threatened. A bank is a duly incorporated company in Nigeria holding a valid banking licence. This licence authorizes the company to receive deposit on current account, Savings account or on other similar accounts. It is also the authority for the company to pay or collect cheques drawn by or paid in by customers. The company may then provide finance or such other business as the Governor of the Central Bank of Nigeria may by order published in the gazette designate as banking business.