The Central Bank of Nigeria (CBN) has issued a directive to banks, emphasizing the need to prioritize cash distribution through Automated Teller Machines (ATMs) while cautioning against practices that undermine the efficient and responsible use of the naira.
In a circular released on Friday, Solaja Olayemi, Acting Director of the CBN’s Currency Operations Department, highlighted the apex bank’s ongoing efforts to curb naira abuse and ensure equitable cash access, particularly during the yuletide season when demand is expected to rise.
The directive also warned banks against handing cash to individuals involved in hawking mint naira notes, a practice deemed illegal by the CBN. Spot checks have been initiated to trace such activities, with severe penalties awaiting offenders.
Key Points from the Circular:
1. Monitoring and Penalties:
Banks linked to hawkers will face a 10% penalty on the seized cash value. Repeat offenses will incur an additional 5% incremental penalty.
2. Clean Note Policy Violations:
Banks engaging in cash hoarding, diversion, or activities violating the Clean Note Policy will face strict sanctions.
3. Focus on ATMs:
Banks are urged to channel cash distribution through ATMs to enhance public accessibility.
4. Internal Controls:
Deposit Money Banks (DMBs) are advised to implement robust controls to ensure accountability and prevent the misuse of mint banknotes.
This directive aims to discourage cash abuse and support a more efficient distribution network while reinforcing the integrity of Nigeria’s currency system.
Peoplesmind
