23.6 C
Nigeria
Tuesday, October 4, 2022

CBN warns banks against circulation of mutilated banknotes, violation to attract 400% penalty

The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs) against circulating mutilated banknotes which are part of their deposits with the apex bank.

The CBN has expressed concerns over the increasing number of these mutilated banknotes which the members of the public usually request for their replacement.

Mutilated  notes are usually put together with the intention of receiving value, the Mutilated banknote, the Apex bank called composed bank notes 

Join any of these WhatsApp Groups to receive Prompt News Update on WhatsApp

The warning by the CBN is contained in a circular titled, ‘Treatment of Composed Banknotes’, issued to all deposit money banks on March 31, 2022, and signed by the apex bank’s Director, Currency Operations Department, and can be seen on its website.

 

Umar in the circular said that the existence of such banknotes in the economy falsifies the true value of the currency in circulation and could also be avenue for fraudulent activities.

he warning by the CBN is contained in a circular titled, ‘Treatment of Composed Banknotes’, issued to all deposit money banks on March 31, 2022, and signed by the apex bank’s Director, Currency Operations Department, and can be seen on its website.

 

Umar in the circular said that the existence of such banknotes in the economy falsifies the true value of the currency in circulation and could also be avenue for fraudulent activities.


he circular from the CBN reads, “The management of the CBN observed with concern the increase number of composed banknotes deposited by DMBs and request for replacement of such banknotes by members of the public.

“The existence of composed banknotes in the economy falsify the true value of currency in circulation, and can also be avenue for fraudulent activities.

Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of 400 per cent of the value.

‘’This circular takes effect from 1st April 2022.’’

Share a story or tip with us on WhatsApp: 07041591544 intelregion.com@gmail.com

📡Our Social Media Channels:

BREAKING NEWS

- Advertisement -