CBN Threatens To Penalise Banks Rejecting Mutilated Naira Notes

The Central Bank of Nigeria (CBN) has threatened to sanction Deposit Money Banks (DMBs) rejecting dirty or mutilated Naira notes.

In a statement released on Thursday by the acting director of the currency operations department, Solaja Olayemi, the apex bank emphasized that strict penalties will be enforced against banks that fail to accept these notes from the public.

According to the CBN, numerous complaints have been lodged by consumers about certain banks’ practices of refusing to accept worn and torn Naira notes.

“The Central Bank of Nigeria has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks,” Olayemi stated.

This issue not only inconveniences the public but also contravenes the guidelines set forth by the CBN.

The CBN reminded banks of the circular issued on July 2, 2019, coded COD/DIR/GEN/CIR/01/006, which outlines the penalties for rejecting Naira banknotes.

“It has become imperative to remind DMBs that the CBN circular is still enforceable and binding on erring DMBs,” the statement read.

Furthermore, the CBN reiterated a similar stance on the acceptance of U.S. dollar deposits, particularly old series and lower denominations, which some banks and authorized foreign exchange dealers have been rejecting.

This practice was highlighted during a recent consumer market survey conducted by the CBN, which found that selective acceptance of deposits was still prevalent.

The apex bank has stated it will not hesitate to impose sanctions on banks that continue to reject naira deposits under any guise, emphasizing the importance of adherence to set guidelines to ensure smooth and fair banking operations for all Nigerians.