KEY POINTS
- Banks selling mint naira notes to hawkers no longer safe — CBN.
- Violators can expect to pay fines of at least 10% of the cash value involved.
- ATM to Keep Circulation of Cash Transparent During Yuletide Season.
The Central Bank of Nigeria, CBN, has warned the Deposit Money Banks, DMBs, against selling mint naira notes to hawkers stating that violators would face heavy sanctions.
The Ag on Friday released a circular detailing the warning. Mr. Solaja Olayemi is the Director of Currency Operations.
**Non compliant penalties**
In addition, the CBN said any bank traced to the minting of notes found in possession of hawkers would be fined an amount equal to 10 percent of the value of the money withdrawn from the CBN on the day of the offense.
Successive violation will attract an increment of 5% fine.
It also warned everybody against diversion or hoarding, or any other activity that might affect the smooth movement of cash to the extent of enforcing the Clean Notes Policy.
Efficient cash circulation during Yuletide
With the CBN insisting on transparency in the distribution of new naira notes, the CBN has pleaded with banks to discourage their customers from queuing for new notes at the banking halls.
Thereby discouraging hooliganism and other mindless opportunists, urging banks to emphasise to the public that dispensing new naira notes would now be via Automated Teller Machines (ATMs).
However, to enforce compliance, the CBN will also intensify its mystery shopping and spot check, together with law enforcement agencies.
According to the circular, banks must “put in place robust internal controls to ensure proper cash flow system and avert abuse of the naira.”
This is part of the CBN general efforts at protecting the currency and at sensitizing members of the public on responsible currency handling.
