Monday , September 26 2022
CBN to Fine Banks N400 for Every Mutilated N100 Note Included In Deposits

CBN to Fine Banks N400 for Every Mutilated N100 Note Included In Deposits

The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMB) to stop including mutilated notes as part of their deposits with the apex bank.

Ripples Nigeria had earlier reported how the CBN spent N3.88 billion to destroy over N4.13 trillion worth of dirty currencies deposited by commercial banks in the last six years.

(NAN) reports that composed banknotes are mutilated currency notes comprising several parts of different banknotes of the same denomination.

The parts of such currency notes are usually put together with the intention of receiving value

Umar said that the existence of such banknotes in the economy falsified the true value of currency in circulation, and could also be avenue for fraudulent activities.

To stop the trend, the CBN in a circular signed by its Director of Currency Operations, Ahmed Umar, warned banks would now pay a fine of N400 for every N100 mutilated dirty notes effective from April 1.

Read More: CBN Prohibits Credit Guarantee Companies from Accepting Deposits

Umar said that the existence of such banknotes in the economy falsified the true value of the currency in circulation.

He added that the development could also be a channel for fraudulent activities in the banking sector.

The director stressed that mutilated banknotes discovered in the banks’ deposits with the apex bank would attract a penalty of 400 percent of the value.

The circular read: “The management of the CBN observed with concern the increasing number of composed banknotes deposited by DMBs and the request for replacement of such banknotes by members of the public.

“The existence of composed banknotes in the economy falsifies the true value of the currency in circulation, and can also be an avenue for fraudulent activities.

“Consequently, any composed banknote discovered in the deposit of DMBs shall attract a penalty of 400 percent of the value.”

About Bukola Olanrewaju

Check Also

FrieslandCampinaWamco’s Manufacturing Executive Wins Manufacturer Executive of the Year Award

FrieslandCampinaWamco’s Manufacturing Executive Wins Manufacturer Executive of the Year Award

The Manufacturing Director at FrieslandCampina, Mr Adekola Lamidi, recently bagged the Manufacturer Executive of the …

Leave a Reply

Your email address will not be published.