The Central Bank of Nigeria says it will heavily penalise banks with empty ATMs and those selling ‘mint’ cash to naira hawkers.
The Central Bank of Nigeria says it will heavily penalise banks with empty ATMs and those selling ‘mint’ cash to naira hawkers.
Solaja Olayemi, CBN’s acting director for the currency operations department, said this in a memo to DMBs on Friday.
Mr Olayemi said that the CBN would engage in “mystery shopping” exercise and periodic “spot checks” on cash distribution and disbursement activities of DMBs to ascertain the source of such Naira notes.
He said that the initiatives were introduced to monitor and prevent practices that facilitate the flow of mint banknotes to hawkers of naira cash, thereby discouraging abuse of the naira.
He said that the initiatives would also ensure that DMBs support efficient and responsible cash disbursement to the public.
“For the avoidance of doubt, it should be noted that DMBs, to whom cash seized from hawkers of cash is traced, will be penalised 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the CBN.
“Every subsequent offence will be charged an incremental penalty of five per cent.
“DMBs found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, including violations of the Clean Note Policy, will incur appropriate sanctions,” he said.
He urged DMBs to implement internal controls for responsible disbursement and accountability regarding mint banknote payouts at their outlets, as the yuletide season approached, with an anticipated increase in cash demand.
“To enhance public access to cash, we encourage banks to prioritise cash distribution through Automated Teller Machines (ATMs).
“During this season, the CBN, in collaboration with relevant law enforcement agencies, will intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent naira abuse,” he said.
(NAN)
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