By Chris Agabi
The Central Bank of Nigeria (CBN) has warned against irresponsible disbursement of mints ( new naira notes racketeering) as the yuletide season sets in.
The yuletide season comes with huge demands for mints especially to be used during occasions. In the past, the banks have been fingered for hoarding the mints from customers while selling the new naira notes to block marketers for a fee. The black marketers would later sell to those in need to as high as 20 percent of the value of the new notes.
The forestall this criminal act, the CBN has charged the banks to enhance public access to cash, and to prioritize cash distribution through Automated Teller Machines (ATMs).
The CBN) also mandated Deposit Money Banks (DMBs) to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets.
The CBN gave the charge in a a circular titled ‘Mystery shopping & spot checks on cash disbursement activities of Deposit Money Banks (DMBs)’ addressed to all Deposit Money Banks.
In the circular, the Acting Director, Currency Operations Department, Solaja, Mohammed J. Olayemi, stated that during this season, the apex bank, in collaboration with relevant law enforcement agencies, will intensify spot checks and mystery shopping activities to monitor and enforce responsible cash distribution and prevent Naira abuse.
The circular read in part: “Please refer to the subsisting circular on mystery shopping exercise and periodic spot checks on cash distribution/disbursement activities of Deposit Money 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.
“For the avoidance of doubt, it should be noted that:
a) DMBs, to whom cash seized from “hawkers” of cash is traced, wil be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN).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 an incremental penalty of 5%.
b) DMBs 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.”
Yuletide: CBN Warns Banks Against Mint Racketeering
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