Business
…suspends bank charges on cash deposit
By Kennedy Nnamani
THE Central Bank of Nigeria, CBN, has announced that it will redesign, produce and circulate new series of the banknotes.
Godwin Emefiele, the CBN Governor made this disclosure today in Abuja during a special press briefing.
According to him, the Management of the CBN sought and obtained the approval of President Muhammadu Buhari to redesign, produce and circulate new series of banknotes of N100, N200, N500, and N1000 and begin the circulation from December 15, 2022.
“However, the new and existing currencies shall remain legal tender and circulate together until January 31, 2023 when the existing currencies shall cease to be legal tender,” Emefiele said.
He noted that in recent times, currency management has faced several daunting challenges that have continued to grow in scale and sophistication with attendant and unintended consequences for the integrity of both the CBN and the country.
The challenges highlighted by the CBN governor included hoarding of banknotes by members of the public.
According to him, over 80 percent of currency in circulation are outside the vaults of commercial banks, worsening shortage of clean and fit banknotes with attendant negative perception of the CBN and increased risk to financial stability, increasing ease and risk of counterfeiting evidenced by several security reports.
“Indeed, recent development in photographic technology and advancements in printing devices have made counterfeiting relatively easier,” he said.
“In recent years, the CBN has recorded significantly higher rates of counterfeiting, especially at the higher denominations of N500 and N1000 banknotes,” he said.
In addition, Emefiele stated that global best practice is for central banks to redesign, produce and circulate new local legal tender every 5–8 years, however, Naira has not been redesigned in the last 20 years.
Furthermore, the apex bank boss enjoined customers of banks to begin paying into their bank accounts the existing currency to enable them withdraw the new banknotes once circulation begins.
He further directed all Deposit Money Banks, DMBs, to suspend with immediate effect, all bank charges for cash deposits.
“DMBs are to note that no bank customer shall bear any charges for cash returned/paid into their accounts,” he said.
He added that all DMBs currently holding the existing denominations of the currency should immediately begin returning the notes back to the CBN.
Emefiele also called on banks to keep their currency processing centers open from Monday to Saturday so as to accommodate all cash that will be returned by their customers.
KN
Tags: CBN Godwin Emefiele Kennedy Nnamani Muhammadu Buhari
