CBN to sanction banks selling cash to naira hawkers, orders use of ATMs 1

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The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) of penalties against any that sells crisp banknotes to hawkers.

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The CBN’s acting Director of Currency Operations, Mr. Solaja Olayemi, issued the warning through a circular on Friday.

The apex bank said that it would conduct checks across the country to seize mint banknotes from hawkers, adding that any bank to which such notes are traced would pay 10 percent of the value of the cash withdrawn from the CBN on the day the affected notes were withdrawn.

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CBN added that any further offence would be charged at 5 percent incrementally against the affected bank.

It warned that DMBs involved in hoarding, diversion or any activity that hinders efficient cash distribution including violations of the Clean Notes Policy would incur appropriate sanctions.

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The CBN said that as the yuletide approaches banks were encouraged to implement internal controls that would enhance cash distribution in a transparent manner, especially, the use of Automated Teller Machines in the circulation of new notes.

It said that in the days ahead, it would increase its mystery shopping, as well as, spot checks, in collaboration with relevant law enforcement agencies to avoid abuse of the Naira.

 

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