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CBN Gives Instructions to Banks on Sale of Mint Naira Notes to Hawkers
Money

CBN Gives Instructions to Banks on Sale of Mint Naira Notes to Hawkers

by  Dave Ibemere 2 min read
  • The CBN has expressed its intention to punish banks that violate its clean naira policy by selling to currency hawkers
  • The apex bank wants all banks to prioritise cash disbursement through ATMs and implement internal controls
  • The CBN added that it will monitor and penalise banks linked to currency hawkers when caught

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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 instructed Deposit Money Banks (DMBs), including Access Bank, United Bank for Africa (UBA), and Zenith Bank, to ensure cash availability through Automated Teller Machines (ATMs).

CBN disclosed this in a circular issued by Solaja Olayemi, Acting Director of Currency Operations, on Friday, November 15.

CBN load ATM with cash
CBN wants banks to load ATMs with cash Photo credit: Benson Ibeabuchi
Source: Getty Images

The apex bank said it will penalise banks involved in selling mint naira notes to hawkers.

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It also stated that it would conduct nationwide inspections to seize mint notes found with hawkers and hold the responsible banks accountable.

Part of the CBN circular reads:

“DMBs traced to cash seised from hawkers will face a penalty of 10% of the total value of cash withdrawn from the CBN on the day of the infraction."

It added that repeat offenders would face incremental fines of 5% for subsequent breaches.

CBN on sale of naira notes

The CBN also cautioned DMBs against hoarding, diverting cash, or engaging in activities obstructing efficient cash distribution, including violations of its clean notes policy. Vanguard reports.

To enhance transparency and efficiency, banks have been advised to strengthen internal controls for cash distribution, mainly through ATMs, ensuring widespread circulation of new naira notes.

The regulator further disclosed plans to increase mystery shopping and spot checks in collaboration with law enforcement agencies to curb currency abuse.

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Aba power company seeks approval to increase electricity tariff

Access, UBA, others offer high interest on savings account

Earlier, Legit.ng reported that the Central Bank of Nigeria (CBN) had released the latest savings interest rates for Nigerian banks.

The data, published on the CBN website, is part of the apex bank's commitment to transparency to guide customers.

Checks showed that 18 Nigerian banks now offer their customers at least 7.88% interest on their deposits.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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