CBN Imposes Penalty On Banks For Mutilated Notes | latest news from nigerian newspapers today

CBN Imposes Penalty On Banks For Mutilated Notes

Business & Economy

The central bank of Federal Republic of Nigeria (CBN) has directed Deposit cash Banks (DMB) to prevent as well as mutilated notes as a part of their deposits with the apex bank.

Ahmed Umar, director, currency operations department of CBN, in Abuja, said this in a circular issued over the weekend.

According to the circular, the directive took result from april one.

Composed banknotes are mutilated currency notes comprising many parts of different banknotes of the same denomination.

The parts of such currency notes are sometimes place together with the intention of receiving value.

Umar same that the existence of such banknotes in the economy falsified the true value of the currency in circulation.

He also be that it might also be a channel for deceitful activities.

CBN Imposes Penalty On Banks For Mutilated Notes | latest news from nigerian newspapers today
CBN Imposes Penalty On Banks For Mutilated Notes | latest news from nigerian newspapers today

He said that henceforth, composed banknotes discovered in the deposit of DMBs shall attract a penalty of four hundred percent of the value.

“The management of the CBN observed with concern the rise number of composed banknotes deposited by DMBs and request for replacement of such banknotes by members of the public,” CBN said.

“The existence of composed banknotes in the economy falsify the true worth of currency in circulation, and may also be avenue for fraudulent activities.

“Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of four hundred percent of the value.”

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