To curb the abuse of currency associated with the yuletide season, the Central Bank of Nigeria CBN ( CBN) has advised Deposit Money Banks (DMBs) to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets.
The CBN warns of imposing penalties on DMBs found supplying mint to currency hawkers.
This warning is contained in a circular signed by Solaja, Mohammed J. Olayemi, Acting Director, Currency Operation on Friday in Abuja.
The circular which has been circulated widely to DMBs reads in part: ” DMBs, to whom cash seized from “hawkers” of cash is traced, will be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN). Every subsequent offence will be charged an incremental penalty of 5%.”
“In addition, DMBs found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, including violations of the Clean Note Policy, will incur appropriate sanctions”.
“During this Yuletide season, the CBN, in collaboration with relevant law enforcement agencies, will intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent Naira abuse”, it added.
To enhance public access to cash, Apex Bank encourages banks to prioritize cash distribution through ATMs.
The bank referenced an existing circular to DMBs on a similar subject- periodic spot checks on cash distribution/disbursement activities of Deposit Money Banks (DMBs).
“As you will recall, these initiatives were introduced to: Monitor and prevent practices that facilitate the flow of mint banknotes to “hawkers” of naira cash, thereby discouraging abuse of the Naira, and ensuring that DMBs support efficient and responsible cash disbursement to the public”
