THE Central Bank of Nigeria (CBN) at the weekend said it will penalize any bank found with composed notes. This, the apex bank said it will attract a penalty of 400 percent of the value found in their deposit.
According to the document signed by the Director, Currency Operations Department Ahmed B. Umar and posted on the CBN site, the management of the CBN has observed with concern the increasing number of composed banknotes deposited by Deposit Money Banks (DMBs) and request for replacement of such banknotes by member of the public.
He explained that the existence of composed banknotes in the economy falsifies the true value of currency in circulation and can also be an avenue for fraudulent activities.
“A composed banknote is a banknote that comprises of several parts of different banknotes of the same denomination put together with the intention of receiving value. Consequently any composed banknotes discovered in the deposits of DMBs shall attract penalty of 400 percent of the value”, he said.
This he said takes effect from April 1st, 2022.
In April 2019, the CBN introduced the Clean Note Policy to put an end to the regime of mutilated naira notes.
In a circular containing the policy, the CBN defined mutilated notes as a poor quality banknote that requires a special examination to determine their value.
The notes could be partially or permanently damaged by fire, water, dye, insects, rodents or destroyed by natural disasters, the apex bank added.
The circular directed banks and cash processing companies making deposits at the apex bank to classify or sort their cash deposits into fit and unfit notes.
According to the circular, failure to do so will attract a penal charge of N12,000 per box, or an amount determined by the CBN.
It, however, noted that the CBN and the DMBs would continue to receive mutilated notes from the public.
But with the new directive by the apex bank, it is now unclear if banks will continue to accept mutilated naira notes.
