CBN warns banks against rejecting mutilated naira notes

The Central Bank of Nigeria (CBN) on Thursday warned deposit money banks (DMBs) not to reject mutilated naira notes while threatening to penalise defaulters of the action.

In a statement by Solaja Olayemi, CBN’s acting director of the currency operations department, the apex bank said several reports have been made against the banks.

“The Central Bank of Nigeria (CBN) has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks (DMBs),” the bank said.

“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.”

The apex bank said it would not hesitate to impose strict sanctions on banks reported to have rejected naira deposits from the public under any guise.