See Why CBN is warning banks on rejecting bank notes from customers

• The CBN has warned Nigerian banks and other financial institutions against rejecting dirty and mutilated naira notes
• The apex bank is threatening to sanction any bank that is reported to have rejected dirty bank notes from customers
• Customers are encouraged to report any non-compliance by banks to the CBN through its Consumer Protection Department and social media platforms

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has directed commercial banks across the country to accept dirty and mutilated naira notes from customers.

This directive was given in a circular dated June 28, 2024, signed by the Acting Director, Currency Operations Department, CBN, Mr. Solaja Mohammed, and made public on the apex bank’s website on Wednesday, July 3.

CBN to sanction banks rejecting dirty naira notes Photo credit: Pius Utomi Ekpei
Source: Getty Images

The CBN stated that it has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks (DMBs).

In the circular, CBN emphasized that all denominations of the naira, regardless of their condition, remain legal tender.

The directive mandates banks to accept these notes and send them to the CBN for processing and replacement.

The circular reads:

“Consequently, it has become imperative to remind DMBs that the CBN circular dated July 2, 2019 reference number COD/DIR.GEN/CIR/01/006, which prescribes penalties for the rejection of Naira banknotes, is still enforceable and binding on erring DMBs.“Going forward, the CBN shall not hesitate to apply strict sanctions on DMBs, who are reported to have rejected deposits of Naira banknotes from the public under any guise.”

Similarly, Legit.ng reported that the CBN had warned banks and bureau de change (BDC) operators against the continued rejection of old series and lower denominations of the United States of American Dollars.

CBN to close millions of bank accounts

Earlier, Legit.ng revealed that CBN is planning to close bank accounts without BVN to clean up the sector and reduce fraud.

BVN is a unique identifier capturing biometric data used to verify customer identities and prevent fraud.

There are 24 commercial banks operating in Nigeria, including Access, UBA, Zenith, and other financial institutions that require BVN.

Source: Legit.ng