CBN Gives Orders to Access, UBA, Zenith, Others Over Dirty Banknotes From Customers

• The CBN has warned Nigerian banks and other financial institutions against rejecting dirty and mutilated naira notes
• The apex bank is threatening to sanction any bank that is reported to have rejected dirty bank notes from customers
• Customers are encouraged to report any non-compliance by banks to the CBN through its consumer protection department and social media platforms

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has directed commercial banks across the country to accept dirty and mutilated naira notes from customers.

This directive was issued in a circular dated June 28, 2024, and signed by Mr. Solaja Mohammed, acting director of the currency operations department at CBN. It was published on the apex bank's website on Wednesday, July 3.

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The CBN stated that it has received several reports of rejection of dirty/mutilated naira banknotes by some Deposit Money Banks (DMBs).

The directive mandates banks to accept these notes and send them to the CBN for processing and replacement.

The circular reads:

"Consequently, it has become imperative to remind Deposit Money Banks (DMBs) that the CBN circular dated 2 July 2019, reference number COD/DIR.GEN/CIR/01/006, which prescribes penalties for the rejection of naira banknotes, remains enforceable and binding on any non-compliant DMBs.

"Going forward, the CBN shall not hesitate to apply strict sanctions on DMBs reported to have rejected deposits of naira banknotes from the public under any guise."

CBN has always emphasised that all denominations of the naira remain legal tender regardless of their condition.

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Legit.ng earlier reported that the CBN also warned banks and Bureau de Change (BDC) operators against the continued rejection of old series and lower denominations of the United States of American dollars.

Banks announce new requirement to buy dollars

Legit.ng also previously reported that Nigerian banks released a fresh requirement to customers looking to buy foreign currencies.

The new update comes as the naira records a strong performance in both the official and unofficial markets.

There are strong expectations that the currency's value will improve to at least N1,300 in the coming days.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng