CBN Charges Banks to Prioritize Cash Distribution Through ATMs to Enhance Public Access

Oru Leonard 

To stem them the inconvenience experienced by individuals due to increase in cash demand, during last months of the year, the Central Bank of Nigeria (CBN), has advised Deposit Money Banks (DMBs) to implement internal controls for responsible disbursement and accountability in respect of mint banknotes payouts at their outlets.

CBN has therefore urged banks to prioritize cash distribution through Automated Teller Machines (ATMs), in order to enhance public access to cash.

This is contained in a circular to all Deposit Money Banks, signed by the Acting Director, Currency Operations Department, Solaja, Mohammed J. Olayemi. He noted that during this season, the 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 with the titled, ‘Mystery shopping & spot checks on cash disbursement activities of Deposit Money Banks (DMBs)’ reads in part; “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a) DMBs, to whom cash seized from “hawkers” of cash is traced, wil be penalized 10% of the total value of cash withdrawn on the day the seized cash was withdrawn from the Central Bank of Nigeria (CBN).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.”

Source: The Sight News