The Central Bank of Nigeria (CBN) has directed banks to prioritise cash disbursement through Automated Teller Machines (ATMs) and desist from selling new naira notes to hawkers, while threatening to sanction non-compliant banks.
The apex bank gave the directive in a circular to banks on Friday, titled: Mystery shopping & spot checks on cash disbursement activities of deposit money banks (DMBs).
Ahead of the Yuletide seasons customers of Nigerian banks are currently experiencing cash scarcity in the banking halls and are forced to patronise roadside Point of Sales (PoS) operators, who now dot every nook and cranny of the country.
An issued circular, signed by the apex bank’s acting Director, currency operations department, Solaja Olayemi, disclosed that 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.
The 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that: a) DMBs, to whom cash seized from hawkers of cash is traced, will be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN).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 an incremental penalty of 5%, the apex bank stated.
The 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.
It 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.
