The Central Bank of Nigeria (CBN) has vowed to sanction any Deposit Money Bank (DNB) found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution during the yuletide season.
This was contained in a circular issued on Friday by the Acting Director, Currency Operations Department of the apex bank,
Solaja, Mohammed J. Olayemi.
CBN explained that the action was to prevent practices that facilitate flow of mint banknotes to “hawkers” of naira cash, thereby discouraging abuse of the Naira; and to also ensure that DMBs support efficient and responsible cash disbursement to the public.
It vowed that “DMBs, to whom cash seized from “hawkers” of cash is traced, will be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN)”, adding that every subsequent offense would be charged incremental penalty of 5%.
CBN also noted that “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.”
It said, as the yuletide season approaches , 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.
To enhance public access to cash, the apex bank encouraged the banks to prioritize cash distribution through ATMs.
It stated that it would be collaborating
with relevant law enforcement agencies, during the season, to intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent Naira abuse.
