Strict Measures in Place for Banks Refusing Damaged Naira Notes

The Central Bank of Nigeria (CBN) is warning banks that they could face penalties for turning away old or damaged Naira notes.

An announcement issued by Solaja Olayemi, the acting director of the currency operations department, stressed that severe consequences will be imposed on banks refusing to accept these notes from customers.

The CBN reported receiving numerous complaints from the public regarding certain banks’ refusal to take in worn-out and torn Naira notes.

“The Central Bank of Nigeria has been made aware of instances where Deposit Money Banks have rejected dirty/mutilated Naira banknotes,” noted Olayemi.

This practice not only causes inconvenience to the public but also goes against the directives outlined by the CBN.

The CBN also reminded banks of a previous circular issued on July 2, 2019, identified as COD/DIR/GEN/CIR/01/006, which specifies the repercussions for declining Naira banknotes.

“It is crucial to reiterate to DMBs that the CBN circular remains in effect and is binding on any non-compliant DMBs,” mentioned in the statement.

Moreover, the CBN reiterated a similar position concerning the acceptance of U.S. dollar deposits, especially older series and lower denominations, which some banks and authorized foreign exchange dealers have been refusing.

This issue was brought to light during a recent consumer market study by the CBN, revealing that a selective approach to accepting deposits still persists.

The central bank has affirmed it will take strict actions against banks persisting in rejecting Naira deposits for any reason, stressing the significance of adhering to the established guidelines to ensure smooth and equitable banking services for all Nigerians.