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Currency Value: Every mutilated N100 note from banks attracts N400 penalty –CBN

Mr. Godwin Emefiele, Governor of CBN

*The Central Bank of Nigeria warns the Deposit Money Banks to stop bringing ‘composed banknotes’ as part of their deposits with the apex bank

Isola Moses | ConsumerConnect

In a move to retain the country’s Naira currency value and prevent financial infractions, the Central Bank of Nigeria (CBN) has imposed a penalty of N400 on Deposit Money Banks (DMBs) for every mutilated N100 sent to the Bankers’ Bank, in Abuja, FCT.

ConsumerConnect reports the fresh directive on the penalty took effect from took effect from April 1, 2022

Ahmed Umar, Director of Currency Operations Department of CBN, in a circular warned the DMBs to stop bringing “composed banknotes ” as part of their deposits with the apex bank.

Dirty Naira notes

Composed banknotes are described as ‘mutilated currency notes’ comprising 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.

Umar said that the existence of such banknotes in the economy falsified the true value of currency in circulation, and could also be avenue for fraudulent activities.

He said that henceforth, composed banknotes discovered in the deposit of DMBs shall attract a penalty of 400 percent of the value.

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

The CBN also noted: “Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of 400 percent of the value.”

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