The Central Bank of Nigeria (CBN) has warned commercial banks over their rejection of dirty and mutilated naira banknotes from depositors, adding that they will face sanctions.
The CBN issued this warning in a circular dated June 28, 2024, and signed by Director, Currency Operations Department, Solaja Mohammed Olayemi.
“The Central Bank of Nigeria (CBN) has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks (DMBs),” the circular read.
“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 apex bank said it will not hesitate to apply strict sanctions on DMBs who are reported to have rejected deposits of naira banknotes from the public under any guise.
Olayemi added in the circular addressed to all DMBs and the general public, saying “Mutilating naira notes or coins is a punishable offence according to the law (CBN Act Section 21).
Rejecting naira is also against the law (Section 20 subsection 5).”
