The Central Bank of Nigeria (CBN) has threatened to penalize banks that distribute cash to naira hawkers.
The Supreme Court has also urged banks to prioritize cash disbursements via automated teller machines (ATMs).
The CBN issued the directive in a circular to banks on Friday, titled “Mystery shopping & spot checks on cash disbursement activities of deposit money banks (DMBs)”.
In a circular signed by Solaja Olayemi, acting director, currency operations department at CBN, the apex bank stated that it has begun spot checks to ensure efficient and responsible cash flow to the public and to avoid the disbursement of mint banknotes to people peddling naira notes.
“Please refer to the subsisting circular on mystery shopping exercise and periodic spot checks on cash distribution/disbursement activities of Deposit Money Banks (DMBs). As you will recall, these initiatives were introduced to: 1. Monitor and prevent practices that facilitate flow of mint banknotes to “hawkers” of naira cash, thereby discouraging abuse of the Naira; and 2. Ensure that DMBs support efficient and responsible cash disbursement to the public.”
Additionally, CBN issued a warning that banks that give out naira notes to anyone peddling Nigerian currency will face consequences.
“For the avoidance of doubt, it should be noted that: a) DMBs, to whom cash seized from “hawkers” of cash is traced, will be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN).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 offense will be charged incremental penalty of 5%.”
CBN warned that banks 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”.
“As we approach the yuletide season, with an anticipated increase in cash demand. DMBs are advised to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets. To enhance access to cash, we encourage banks to prioritize cash distribution through ATMs.”
CBN stated that during the holiday season, it will work with relevant law enforcement agencies to increase spot checks and mystery shopping initiatives to monitor and enforce responsible currency distribution and prevent naira abuse.
A Gentle Reminder: Every obstacle is a stepping stone, every morning; a chance to go again, and those little steps take you closer to your dream.
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