Connect with us

Hi, what are you looking for?

E-Financial

CBN Issues Stern Warning: Banks Must Load ATMs, Avoid Naira Hawker Transactions – Ravenewsonline

Central Bank of Nigeria (CBN) has threatened to penalise banks disbursing cash to naira hawkers.

The apex has also directed banks to prioritise cash disbursement through automated teller machines (ATMs).

CBN gave the directive in a circular to banks on Friday titled ‘Mystery shopping & spot checks on cash disbursement activities of deposit money banks (DMBs)”.

Read Also: CBN to Sanction Banks Linked to Cash Hawkers – Ravenewsonline

In the circular signed by Solaja Olayemi, acting director, currency operations department at CBN, the apex bank said it commenced spot checks to ensure efficient and responsible cash disbursement to the public and prevent the disbursement of mint banknotes to persons hawking naira notes.

“Please refer to the subsisting circular on mystery shopping exercise and periodic spot checks on cash distribution/disbursement activities of Deposit money Banks (DMBs).

“As you will recall, these initiatives were introduced to: 1. Monitor and prevent practices that facilitate flow of mint banknotes to “hawkers” of naira cash, thereby discouraging abuse of the Naira; and 2. Ensure that DMBs support efficient and responsible cash disbursement to the public.”

CBN also warned that banks disbursing naira notes to persons hawking the Nigerian currency will be penalised.

“For the avoidance of doubt, it should be noted that: a) DMBs, to whom cash seized from “hawkers” of cash is traced, will be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN).

Every subsequent offense will be charged incremental penalty of 5%.”

CBN warned that banks 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”.

“As we approach the yuletide season, with an anticipated increase in cash demand. DMBs are advised to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets.

Read Also: CBN Reports $3.5bn Spent on Foreign Debt Servicing in Nine Months – Ravenewsonline

“To enhance access to cash, we encourage banks to prioritize cash distribution through ATMs.”

CBN said during the yuletide season, it will collaborate with relevant law enforcement agencies, to intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent naira abuse.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

ad

You May Also Like

Tech

National Identity Management Commission (NIMC) has announced a milestone achievement, with over 117 million Nigerians now enrolled for the National Identity Number (NIN) as...

Tech

Samsung Electronics has taken a bold step in enhancing user experience and inclusivity by introducing Hausa, Igbo, and Yoruba as official language options on...

News

Arik Air in 2024, airlifted 2,239,176 passengers between January 1, 2024, to December 31, 2024, a report sourced from the Nigeria Civil Aviation Authority...

News

MTN Media Innovation Program (MIP), a six-month fully-funded certificate fellowship designed for media professionals, is redefining journalism and content creation in Nigeria. Now in...