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Enioluwa Adeniyi
Guest
The Central Bank of Nigeria (CBN) has instructed commercial banks to prioritize cash disbursements through automated teller machines (ATMs), warning that institutions failing to comply would face penalties.
In a statement issued on Friday, Solaja Olayemi, Acting Director of the Currency Operations Department at the CBN, emphasized the need to ensure easier access to cash for Nigerians amidst reports of scarcity.
The CBN also cautioned against supplying naira notes to individuals or groups involved in the illegal hawking of currency.
Naija News reports that the directive comes as citizens lament the scarcity of cash, which has disrupted transactions and heightened economic uncertainty.
In the circular signed by Olayemi, the apex bank said 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 circular reads, “Please refer to the subsisting circular on mystery shopping exercise and periodic spot checks on cash distribution/disbursement activities of Deposit %oney Banks (DMBs).
“As you will recall, these initiatives were introduced to: 1. Monitor and prevent practices that facilitate flow of mint banknotes to “hawkers” of naira cash, thereby discouraging abuse of the Naira; and 2. Ensure that DMBs support efficient and responsible cash disbursement to the public.”
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that: a) DMBs, to whom cash seized from “hawkers” of cash is traced, will be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN).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 incremental penalty of 5%,” the apex bank said
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”.
“As we approach the yuletide season, 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 access to cash, we encourage banks to prioritize cash distribution through ATMs,” CBN said.
CBN 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.
The post Breaking: CBN Issues Directives To Banks Amidst Cash Scarcity appeared first on Naija News.