CBN Warns Banks Against Rejecting Dirty and Mutilated Naira Notes

The Central Bank of Nigeria (CBN) has issued a stern warning to banks across the country regarding the rejection of dirty and mutilated Naira notes. In a circular dated June 28, 2024, and signed by the Acting Director of Currency Operations, Mr. Solaja Mohammed, the CBN stated that any bank found guilty of rejecting such banknotes would face strict sanctions.

The circular, made public on Wednesday, highlighted that the CBN had received numerous reports of Deposit Money Banks (DMBs) refusing to accept dirty or mutilated Naira notes. The circular reiterated the enforceability of the CBN’s previous directive from July 2, 2019, which prescribes penalties for the rejection of Naira banknotes.

The circular reads: “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 CBN 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.”

In addition, the CBN also addressed the issue of banks and bureau de change (BDC) operators rejecting old series and lower denominations of the United States of American Dollars. The apex bank warned against the continued rejection of these notes, emphasizing the need for adherence to currency acceptance guidelines.

This move by the CBN is aimed at ensuring the smooth circulation and acceptance of all forms of legal tender within the country, thus maintaining public confidence in the nation’s currency.

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