ABSTRACT
This study is intended primarily
to find out why the Nigeria
society appears to have lost confidence on the use of cheques for transaction.
Whether this loss of confidence is as a result of people’s misuse of this
instrument or due to some lapses in the chequeing system itself.
Based on the primary motivation,
various major problems associated with the use of cheques were identified.
However, the use of dud cheques appears to be the base of other problems, which
have precipitated into people’s mistrust for cheque in Nigeria. The result according to
the author’s findings, is the cash payment basis or bankers draft is usually
preferred by individuals, establishments and government agents for settlement
of transactions.
Furthermore, this study give a
number of solutions and recommendation for more effective chequeing system in Nigeria
based on the identified problem.
It is believed that the
elimination of these problems will usher in a more functional chequeing system
in Nigeria.
Happily, the major finding of this study is that there was an increase in the
use of cheques during the currency exchange of 1984, and that more employers
new pay their workers with cheques through the bank.
ONUORAH PATAICIA .N.
BKF/N2003/179.
TABLE OF CONTENTS
Title
page
Approval
page
Dedication
Acknowledgement
Abstract
Table
of content
CHAPTER
ONE
1.1 Introduction
1.2 Definition of terms
1.3 Purpose of the study
1.4 Significance of this study
1.5 Statement of problem
1.6
Limitation
of the study
1.7
Reference
CHAPTER
TWO
2.1 Definition of cheque
2.2 Characteristics of cheque
2.3 Parties to a cheque
2.4 Advantages of cheque
2.5 Disadvantages of cheque
2.6 Problems associated with the use of cheque
2.7 Types of cheque
2.8 Crossed cheques
2.9 Forms of cheque
2.10 Dishonour of cheque
2.11
Reference
CHAPTER
THREE
3.1
Design
and methodology
3.2
Location
of study
3.3
Population
for the study
3.4
Population
sample
3.5
Instruments
for data collection
3.6
Validity
and reliability of the instrument
3.7
Methods
of data collection
3.8
Data
treatment technique
CHAPTER
FOUR
CHEQUE
AS AN IMPORTANT BANK INSTRUMENT FOR DAY TO DAY SETTLEMENT OF TRANSACTION.
4.1
Cheque
as bills of exchange
4.2
Increasing
use of cheque
4.3
Cheque
clearing system
4.4
The
clearing house
4.5
The
clearing house operations
4.6
Clearing
a cheque drawn on another clearing area
4.7
Clearing
a cheque
4.8
Payment
of cheque
CHAPTER
FIVE
5.1
Conclusion
5.2
Production
and cashing of Cheque
5.3
Accelerated
(fast/Quick)
5.4
Education
and training:
5.5
Local
traveler’s Cheque:
Bibliography:
CHAPTER ONE
1.1 INTRODUCTION
The question is does an average
Nigerian really understand what cheque is? Does he for example, know that
cheque are supposed to be mind tenders for monetary transaction.
How does he use the instrument? Again
do banks, government officials and their agent actually encourage the use of
cheque and operate system without necessary suspicion. Have there been any
serious efforts to educate banks, customers and the workings of the system? We
are going to discuss the causes of this problem.
For instance, in America and Britain, most ever transaction is
done in cheque or credit card without bordering anybody with the liquid cash.
Therefore, Nigerians should be thinking as civilized people, though they can on
no way compare their standard of
organization, management and their affairs and responsibility with those of
industrially advanced nations.
The idea of paying for ever thing on
liquid should be left to the past. Payment by chequeing system should be over
handled with an aim of making it function more effectively.
However, the writer is optimistic that
despite all odds and problems facing the Nigerian chequeing system itself has
quite a lot of prospects. That is never works well in Nigeria maybe
attributed to machination of the operator of the system. As soon as the
Nigerian society learns to be honest on their dealings and conscious on their
work, the chequeing system will begin to
work effectively people had the feelings that no one can be trusted and this
makes them not to confide on cheque. But when the chequeing system start to
work effectively, people will begin to trust one another, business transaction
will begin to flow smoothly, loss of liquid cash to arrived robbers will be minimized and the naira will
look afresh.
The aim of the project work is to as
much as possible, identify the problem seemingly facing the Nigerian chequeing
system, the prospects or the growth of all the system, if any will equally be
high liquated. Therefore suggestion and recommendation will be advanced as
means of making the chequeing system work more effectively in Nigeria.
To achieve all thee a conscious
efforts must be made by the operation of chequeing system, and should be geared
to wards educating the Nigeria
public on the importance of the system. In this direction the government has a
part to ply. The Banks and other financial institutions should Toin hands to
save the Nigerian chequeing system from total collapse. There are some solution
for more effective use of cheques on Nigeria,
which we are going to treat on the next coming pages in order that Nigeria chequeing
will prove more effectively. And most of these solutions has to be firstly
solid by banks. When we look more closely we may fund out that the process of
clearing cheques in bank is always a long process thereby frustrating the
customers who is in need of the money thereby discouraging the customers from
putting their money in bank. They prefer lauding their moneys without any
hassles.
1.2 DEFINITION OF TERMS
PROBLEMS: Problem of Nigeria chequeing system or rather
ineffectiveness of cheques in Nigeria
is problems that hinder the growth of Nigeria chequeing system.
PROSPECTS: Prospects of Nigeria chequeing system is the hope or the
height the Nigeria
chequeing tends to attain in the near futures.
1.3 PURPOSE OF THE STUDY
The purpose of this study is to identify the problems,
prospects and growth of Nigeria
chequeing system out finding will help us to determine on how to solve the
problems customers encounter in clearing cheque and what could be done to solve
the problems of chequeing system.
And them, to highlight on the prospects or the height they
want to attain in the near future and then most of their achievement and the
growth they have got so far.
1.4 SIGNIFICANCE OF THE STUDY
The researcher believes that this study will be of immense
significance to both the readers customers to banks and government agencies in
number of ways. By going through this study, the reader will know the problems posed in the country in terms of
Nigerian chequeing system. The reader will understand some problem of lack of
economic development following the consequence of not putting money in the bank
due to delays in clearing cheques.
1.5 STATEMENT OF PROBLEM
This study is centered on the problem
prospects and growth of Nigeria
chequeing system. There are so many problems customer banks have in the use of
cheque as a medium of exchange. Banks are dishonouring so many cheques. There
are frauds in the usage of cheques. Thus a lot of questions are to be answered
in this study. What are the conditions on which cheque could be dishonoured is
the customer to the banks able to make use of cheques issued to him/her. Some
people grant cheques knowing fully well that they don’t have any account in the
said banks to cash the cheque or that they don’t have enough money in their account,
so when people go to banks to present their cheque, it will be dishonoured.
We have heard details or records concerning
forgeries in cheque and manipulation in cheque, which will be treated in the
later payee. When we look in the prospect of cheque in Nigeria system, Banks
are in a high prospect or hope in making Nigeria chequeing system run smoothly
without any problem or to be able to detect fraud in a cheque that is to be
cashed in the bank and so banks has high hope of making chequeing system in
Nigeria run smoothly without any ineffectiveness so that people will be
encouraged to put their money on bank to reduce risk.
1.6 LIMITATION OF THE STUDY
The researcher delimited herself to
banks such as First Bank of Nigeria (FBN) and Inland Bank Nigeria Plc (IBN) and
Guaranty Trust Banks Plc (GTB) some of other Nigerian Banks was also used in
this study and they include:
a. African Continental Bank ltd
b. Diamond Bank Nigeria ltd
c. Fidelity Bank Plc
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