The Central Bank of Nigeria (CBN) has said that it will penalise banks rejecting mutilated naira notes.
The bank said this on Wednesday in a circular to banks dated June 28, titled ‘Penalties For Rejection Of Overcirculated/Mutilated Banknotes By Deposit Money Banks.’
The bank said, “The Central Bank of Nigeria (CBN) has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks (DMBs).
“Consequently, it has become imperative to remind DMBs that the CBN circular dated July 2, 2019, reference number COD/DIR/GEN/CIR/01/006, which prescribes penalties for the rejection of Naira banknotes, is still enforceable and binding on erring DMBs.
“Going forward, the Central Bank of Nigeria shall not hesitate to apply strict sanctions on DMBs, who are reported to have rejected deposits of Naira banknotes from the public, under any guise.”
The CBN described in its clean note police published in 2018 that a mutilated banknote refers to a poor quality banknote that requires a special examination to determine its value.
The CBN said, “The note could be partially/permanently damaged by fire, water, dye, insects, rodents, or destroyed by natural disasters.
“The Central Bank of Nigeria and deposit money banks (DMBs) shall continue to receive mutilated notes from the public.”
CBN Set To Sanction Banks Rejecting Dirty, Mutilated Bank Notes is first published on The Whistler Newspaper
