{"id":3175,"date":"2024-11-16T06:02:13","date_gmt":"2024-11-16T06:02:13","guid":{"rendered":"https:\/\/beadysword.com.ng\/blog\/?p=3175"},"modified":"2024-11-16T06:02:23","modified_gmt":"2024-11-16T06:02:23","slug":"cbn-issues-directives-to-banks-amidst-cash-scarcity","status":"publish","type":"post","link":"https:\/\/beadysword.com.ng\/blog\/2024\/11\/16\/cbn-issues-directives-to-banks-amidst-cash-scarcity\/","title":{"rendered":"CBN Issues Directives To Banks Amidst Cash Scarcity"},"content":{"rendered":"
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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.<\/h3>\n

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.<\/p>\n

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The CBN also cautioned against supplying naira notes to individuals or groups involved in the illegal hawking of currency.<\/p>\n

T<\/b>he directive comes as citizens lament the scarcity of cash, which has disrupted transactions and heightened economic uncertainty.<\/p>\n

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.<\/p>\n

The circular reads,\u00a0\u201cPlease refer to the subsisting circular on mystery shopping exercise and periodic spot checks on cash distribution\/disbursement activities of Deposit %oney Banks (DMBs).<\/em><\/p>\n

\u201cAs you will recall, these initiatives were introduced to: 1. Monitor and prevent practices that facilitate the flow of mint banknotes to \u201chawkers\u201d of naira cash, thereby discouraging abuse of the Naira; and 2. Ensure that DMBs support efficient and responsible cash disbursement to the public.\u201d<\/em><\/p>\n

CBN also warned that banks disbursing naira notes to persons hawking the Nigerian currency will be penalised.<\/p>\n

\u201cFor the avoidance of doubt, it should be noted that: a) DMBs, to whom cash seized from \u201chawkers\u201d of cash is traced, will be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN)<\/em>.<\/p>\n

\u201cEvery subsequent offence will be charged an incremental penalty of 5%,\u201d <\/em>the apex bank said<\/p>\n

CBN warned that banks found engaging in cash hoarding, diversion, or any actions that hinder efficient cash distribution, \u201cincluding violations of the Clean Note Policy, will incur appropriate sanctions\u201d.<\/p>\n

\u201cAs we approach the yuletide season, with an anticipated increase in cash demand. DMBs are advised to implement internal controls for responsible disbursement and accountability with respect of mint banknote payouts at their outlets<\/em><\/p>\n

\u201cTo enhance access to cash, we encourage banks to prioritize cash distribution through ATMs,\u201d<\/em>\u00a0CBN said.<\/p>\n

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.<\/p>\n<\/div>\n<\/div>\n

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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,...<\/p>\n","protected":false},"author":2,"featured_media":3176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-3175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=3175"}],"version-history":[{"count":1,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3175\/revisions"}],"predecessor-version":[{"id":3177,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3175\/revisions\/3177"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media\/3176"}],"wp:attachment":[{"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=3175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=3175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beadysword.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=3175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}