CBN Threatens To Penalise Banks Rejecting Mutilated Naira Notes
The Central Bank of Nigeria (CBN) has issued a warning to Deposit Money Banks (DMBs) that reject mutilated naira notes, stating that it will impose penalties on offending banks. Several reports have been made against DMBs for rejecting dirty or mutilated naira notes, contravening a CBN circular from July 2, 2019, that mandates acceptance of all naira notes.
The CBN reminded banks that the circular, reference number COD/DIR/GEN/CIR/01/006, is still enforceable and will impose strict sanctions on erring banks. The apex bank emphasized that rejecting naira deposits from the public under any guise will not be tolerated.
Additionally, the CBN warned banks and authorized foreign exchange dealers against rejecting old series and lower denominations of dollars, citing a consumer market survey that showed continued rejection of these notes. The bank emphasized the need for compliance and adherence to its instructions to ensure smooth banking operations for all Nigerians.
This move aims to maintain the integrity and value of the Nigerian currency and prevent fraudulent activities. The public is encouraged to report any instances of banknote rejection to the CBN for prompt action.
