Banks Set Limit on New Notes Withdrawal per Customer Over Low Supply From CBN, ATMs Still Dispensing Old Notes
- Its been 48 hours since commercial banks started the circulation of the new naira notes
- However, due to low supply banks have set limits on how much of the new notes a customer is allocated
- Checks also show that the banks' Automatic Teller machines(ATMs) are still dispensing the old naira notes
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Commercial banks are limiting new naira notes issued by the Central Bank of Nigeria (CBN) because many customers want to hold the redesigned notes.
On October 27, 2022, the CBN announced that higher naira denominations - N200, N500, and N1,000 - will be redesigned and introduced into the economy beginning December 15, 2022, and asked commercial banks to return old notes.
However, checks show some bank branches in their Automated Teller Machines dispensed mixtures of old and new notes to customers while others are refusing to pay customers above a certain limit.
Source: Facebook
BusinessDay reports that one of the banks visited paid a maximum of N10,000 new notes to customers on request.
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While some customers were eager to see the new notes, others just wanted the ATMs to dispense money to them.
At a bank, customers who wanted the new naira notes were asked to withdraw over the counter as there was none in the ATMs.
Bank reacts to scarcity of new Naira notes
Jude Monye, executive director at Heritage Bank, said the rationing of the new naira notes is normal because the old notes are still in circulation.
He said the CBN is pumping the redesigned note into the banks and that from Friday to January 31, 2022, there would be a parallel run of the banknotes.
CBN plans for new naira notes
The current scarcity of the new notes seems to be in line with the CBN plan to decrease the volume of higher denominations like N500 and N1000 in circulation.
Emefiele had announced that increasing the high denomination of the currency could be part of the factors fuelling inflation in the country.
He, therefore, promised that the new naira notes will be printed in limited supply.
'Abuse the naira, go to jail': CBN warns Nigerians
Meanwhile, the Central Bank of Nigeria has issued a warning to Nigerians against naira misuse.
The old and new naira notes will be a legal currency until Tuesday, January 31, 2023.
The new notes have denominations of N1,000, N500, and N200, and the CBN wants Nigerians to show respect.
Source: Legit.ng
