CBN Warns Banks Against Rejecting Dirty or Mutilated Naira Notes, Threatens Penalties

The Central Bank of Nigeria (CBN) has issued a strong warning to Deposit Money Banks (DMBs) concerning the refusal of worn or mutilated Naira notes, emphasizing strict penalties for non-compliance.

In a statement released on Thursday by Solaja Olayemi, Acting Director of the Currency Operations Department, the CBN expressed concern over reports of banks rejecting dirty or torn Naira banknotes, despite guidelines prohibiting such practices.

Olayemi highlighted that the CBN has received numerous complaints from the public regarding this issue, stating, “The Central Bank of Nigeria has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks.”

The statement referenced a circular issued on July 2, 2019 (coded COD/DIR/GEN/CIR/01/006), which outlines penalties for banks found rejecting Naira banknotes. Olayemi stressed that this circular remains enforceable and binding on all DMBs.

Additionally, the CBN reiterated concerns about the selective acceptance of U.S. dollar deposits, particularly older series and lower denominations, by some banks and authorized foreign exchange dealers. This practice was noted during a recent consumer market survey conducted by the CBN.

The apex bank emphasized its commitment to enforcing compliance with these guidelines to ensure fair and efficient banking operations nationwide.