The Central Bank of Nigeria (CBN) has directed banks to accept cash deposits beyond the cashless policy threshold.
This is part of efforts aimed at ensuring the success of the withdrawal of old notes from circulation in exchange for the redesigned high-value naira notes.
The director of corporate communications, CBN, Osita Nwanisobi, disclosed this on Thursday on the occasion of the CBN’s special day at the ongoing 2022 Lagos international trade fair.
“While Deposit Money Banks (DMBs) have been directed to immediately start returning the existing currencies to the CBN, they have also been instructed to receive the existing banknotes beyond the threshold stipulated by the Cashless Policy without charge to customers,” he said.
The existing cashless policy places a daily cumulative limit of N500, 000 and N3, 000,000 on cash withdrawals and lodgments by individual and corporate customers respectively. Anything above those limits attracts charges.
This will now give way to ensure the success of the Naira redesign project.
CBN governor, Godwin Emefiele, recently announced that the apex band had secured the approval of President Muhammadu Buhari to redesign high-value Naira notes and circulate them.
The affected notes are N200, N500, and N1000 denominations.
Nwanisobi who was represented by Samuel Okogbue, deputy director, corporate communications department, said the new and existing currencies shall remain legal tender and circulate together until January 31, 2023,
Explaining the reasons for the Naira redesign, Amina Abdulmalik, deputy director, currency operations department, CBN,said counterfeiting and hoarding were the reasons for redesigning and introducing new banknotes.
“We have a huge challenge of counterfeiting; Nigerians have set up factories and are just churning out bank notes because those banknotes do not come back into the banking system.
“We are not able to fish out the counterfeits; and most central banks in the world redesign when they see the level of counterfeits growing. But if you don’t have confidence in your bank notes then there’s a problem,” she said.
