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2.1.3. 18+ DID YOU MISS THE TREND? SEE ALL 400 V!D£0 CLIPS, $£X T4P£ OF Equatorial Guinea Baltasar Ebang Engonga.The Central Bank of Nigeria has warned Deposit Money Banks over cash hoarding and diversion, emphasising that such actions will attract stiff penalties. In a circular dated November 13, 2024, signed by the Acting Director of Currency Operations, Muhammad J. Olayemi, and released by the CBN on Friday, the apex bank announced measures to ensure efficient and transparent cash disbursement. ...READ THE FULL STORY FROM SOURCE ↔️
The CBN reminded banks of its ongoing mystery shopping exercises and spot checks aimed at discouraging the abuse of naira notes and ensuring responsible distribution of cash, especially as the festive season approaches.
According to the circular, the initiatives are designed to prevent the flow of newly minted banknotes to hawkers and support efficient cash disbursement to the public.
The apex bank stated that any DMB traced to seized cash from unauthorised hawkers would face financial penalties.
Such banks will be fined 10 per cent of the total value of cash withdrawn from the CBN on the day the offence was committed.
Repeat offenders will incur an additional five per cent penalty for each subsequent breach.
The CBN also warned against cash hoarding, diversion, and other practices that hinder cash flow, stressing that such actions violate the Clean Note Policy.
It noted that defaulters would face appropriate sanctions, which may include additional fines or other regulatory actions.
The circular read, “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DMBs, to whom cash seized from “hawkers” of cash is traced, will be penalized 10 per cent of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria. Every subsequent offence will incur an incremental penalty of 5 per cent.
“b) 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.”
With the festive period typically seeing heightened cash demand, the CBN has directed banks to implement internal controls to ensure accountability and transparency in handling cash disbursement. The apex bank further urged DMBs to prioritise dispensing cash through Automated Teller Machines to enhance public access.
The directive comes amid growing complaints of limited access to cash, particularly in ATMs.
To enforce compliance, the CBN disclosed plans to collaborate with law enforcement agencies to step up monitoring efforts through spot checks and mystery shopping activities.
These measures, it said, would ensure that erring banks are held accountable and that cash abuse is curtailed.
The PUNCH earlier reported that the Automated Teller Machines of Deposit Money Banks have consistently remained empty in recent months as banks grapple with a sustained low cash supply.
It was also gathered that some DMBs, particularly in the Federal Capital Territory, have begun another round of cash rationing, restricting maximum over-the-counter withdrawals to a daily limit between N5,000 and N20,000. While banks struggle to get cash, Point-of-Sales operators have been fulfilling the cash needs of customers.…READ THE FULL STORY FROM SOURCE ↔️
