The Central Bank of Nigeria (CBN) has told bank operating in the country to continue to accept mutilated Naira notes from members of the public.
This information was stated in the Clean Note Policy recently released by the apex bank.
The CBN described a mutilated Naira as a “poor quality banknote that requires a special examination to determine its value.
“The note could be partially/permanently damaged by fire, water, dye, insects, rodents, or destroyed by natural disasters.
“The Central Bank of Nigeria and deposit money banks (DMBs) shall continue to receive mutilated notes from the public.
“The procedures for the treatment of mutilated notes and the notes for exchange are as enshrined in the Central Bank Operational Manual for the Operation of Mutilated Notes.
“The manual provides uniform guidelines for receiving, processing and replacement of mutilated notes in the Bank.”
The CBN said a currency can be considered mutilated when “torn parts of the banknote are re-joined with adhesive tape in a manner which tries to preserve as nearly as possible the original design and size of the note.
“The original size of the note has been reduced/lost through wear/tear or has been damaged by fire, rodents, insects, chemicals, defaced or perforated through other causes.
“It is scorched or burnt to such an extent that although recognisable as such, it has become frail and brittle as to render further handling impossible.
“More than half of the original size of the banknote is missing.”
The apex bank said to ensure that the banknotes in circulation are clean and of good quality, DMBs shall ensure that they process their banknotes using registered processing companies and classify them into fit and unfit.
“Any counterfeit notes discovered are to be returned to CBN. Only the banknotes which have been authenticated (i.e. verified free from counterfeit and unfit notes according to CBN standard) will be issued over the counter by banks or through their cash dispensing machines.
“Unfit banknotes shall not be re-circulated by DMBs and CPCs. However, a penal charge of N12,000 per box, or any amount determined by the management of the bank, shall apply for the deposit of unsorted banknotes. In addition, penalties as may be determined by the Bank, shall apply for the recirculation of unfit banknotes,” it said.
In the same document, the CBN advised banks not to load their Automated Teller Machines (ATMs) with unfit banknotes, warning that those who contravene this directive would be punished.
“The bank shall ensure that the Automated Teller Machines (ATMs) deployed by DMBs and other service providers are configured to dispense and accept only genuine banknotes in all denominations.
“The ATMs shall dispense notes that have been duly checked for authenticity and fitness according to the [central] bank’s standard and operators whose ATMs contravene this provision shall be sanctioned in line with the existing guideline,” it said.
The central bank explained that it came up with this Clean Note Policy to ensure that the banknotes in circulation were clean and of high quality.
It noted that, “The policy will however, remain open for future amendments in tandem with emerging currency management issues.”
