By John Joseph
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In a bid to maintain the integrity of the Naira and prevent its abuse, the Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) against selling mint banknotes to hawkers. The warning was contained in a circular issued by the Ag. Director Currency Operations, Mr. Solaja Olayemi, on Friday.
According to the CBN, any bank found to have sold mint banknotes to hawkers will be required to pay 10 percent of the value of the cash withdrawn from the CBN on the day the affected notes were withdrawn. Furthermore, any subsequent offence will attract an additional 5 percent penalty incrementally against the affected bank.
The CBN also warned that DMBs involved in hoarding, diversion, or any activity that hinders efficient cash distribution, including violations of the Clean Notes Policy, would incur appropriate sanctions. As the yuletide season approaches, banks are encouraged to implement internal controls that would enhance cash distribution in a transparent manner, especially through the use of Automated Teller Machines (ATMs) in the circulation of new notes.
To ensure compliance, the CBN plans to increase its mystery shopping and spot checks, in collaboration with relevant law enforcement agencies, to prevent the abuse of the Naira. This move is aimed at maintaining the integrity of the currency and preventing its abuse.
In addition to the penalties and sanctions, the CBN’s move is also expected to promote transparency and accountability in the banking sector, as well as ensure that the Naira is treated with dignity and respect. By taking these measures, the CBN is demonstrating its commitment to maintaining the stability and integrity of the financial system.
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