WHEREAS, proper use of a cheque as payment instrument is crucial in facilitating smooth and cashless exchange of goods and services;

WHEREAS, cheque as a negotiable instrument is recognized and given legal protection under Ethiopian laws;

WHEREAS, the National Bank of Ethiopia is entrusted with the responsibility of creating and maintaining efficient, safe and sound payment systems;

WHEREAS, there is a need to determine the manner of proper operation of cheque of a bank and thereby to ensure its safety and credibility as the payment instrument;

NOW, THEREFORE, the National Bank of Ethiopia has issued these Directives pursuant to the authority vested in it by Article 27(2) of National Bank of Ethiopia Establishment Proclamation
(as amended) No. 591/2008.