By Ahmad Deedat Zakari
The Central Bank of Nigeria, CBN, has announced a plan to punish banks for depositing mutilated naira notes.
This was made known to the public in Abuja through a circular signed by CBN’s Director of Currency Operations, Mr Ahmed Umar, over the weekend.
According to Mr Umar, the warning to the banks to stop depositing mutilated and composed banknotes will take effect from Friday, April 1, 2022.
“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 avenue for fraudulent activities.
Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of 400 per cent of the value,” The circular reads.
Composed banknotes or mutilated Naira notes usually comprise several parts of different banknotes of the same denomination.