Naira redesign: No charge on cash deposits, says CBN

As the Central Bank of Nigeria now allows banks to accept cash deposits above the previously set limit of N500,000, it has asked commercial banks not to charge customers on cash deposits..

This follows the CBN announcement of its plans to redesign some naira notes and set the deadline for introducing the new notes for December 15, 2022, and January 31, 2023, to cease the circulation of the old notes.

The notes to be redesigned by the bank are the N200, N500 and N1,000 notes.

Already, some of the banks said they had adjusted their operational procedures to comply with the CBN deadline for the introduction of new banknotes.

The CBN’s Director of Corporate Communications, Osita Nwanisobi, disclosed this at the ongoing 2022 Lagos International Trade Fair.

Nwanisobi who spoke through the bank’s Deputy Director of Corporate Communications, Samuel Okagbue, said banks had been asked to return existing naira notes to the apex bank immediately and instructed to accept cash deposits above the cashless policy threshold without charges.

According to the CBN’s cashless policy, a cumulative daily limit of N500,00 and N3m withdrawals and lodgments for individuals and corporate customers, respectively, without charges, is allowed.

“While Deposit Money Banks (DMBs) have been directed to immediately start returning the existing currencies to the CBN, they have also been instructed to receive the existing banknotes beyond the threshold stipulated by the Cashless Policy without charge to customers,” Nwanisobi said.

Explaining the reasons for the Naira redesign, Amina Abdulmalik, deputy director, currency operations department, CBN,said counterfeiting and hoarding were the reasons for redesigning and introducing new banknotes.

“We have a huge challenge of counterfeiting; Nigerians have set up factories and are just churning out bank notes because those banknotes do not come back into the banking system.

“We are not able to fish out the counterfeits; and most central banks in the world redesign when they see the level of counterfeits growing. But if you don’t have confidence in your bank notes then there’s a problem,” she said.

Banks have adjusted the operation hours and offered alternative deposit methods to their customers.

According to a ThisDay report, Access Bank, in a recent message to its customers, said it was offering alternative channels to its customers and extending its banking hours to 6pm to allow cash deposits.

Also, the bank stated that it would begin Saturday banking to allow customers to meet the CBN deadline of January.

The bank said, “Our customers can deposit their existing naira notes using any of these channels closest to them with ease. Our branches will be open for longer hours during the week for your convenience, and they will also be open on Saturdays from 10 am to 2 pm to receive cash deposits.”

Fidelity Bank also said it had started weekend banking and extension of banking hours for its customers to enable them to cope with the deadline.