Categories: Business

CBN to penalise banks for depositing mutilated notes

The Central Bank of Nigeria (CBN), at the weekend, warned Deposit Money Banks (DMBs) to immediately desist from bringing mutilated banknotes as part of their deposits.

Composed banknotes or mutilated Naira notes comprise several parts of different banknotes of the same denomination.

The parts of such currency notes are usually put together with the intention of receiving value.

The stern warning, which took effect on April 1, was contained in a circular issued by the Director, Currency Operations Department of CBN, Ahmed Umar.

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According to him, having mutilated banknotes in the economy completely distorts the true value of currency in circulation, aside from being a fulcrum for fraudulent activities.

He emphasized that henceforth, composed banknotes discovered in the deposit of DMBs shall attract a penalty of 400 per cent of the value.

“The management of the CBN observed with concern the increase in the 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 falsifies the true value of currency in circulation, and can also be an avenue for fraudulent activities”.

SUN

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