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The Central Bank of Nigeria,has warned banks to stop including composed currency notes in their deposits or risk paying a penalty of 400 per cent of the value of the banknote.
The apex bank gave the warning in a circular titled, ‘Treatment of Composed Banknotes’, issued to all deposit money banks on March 31, and signed by its Director, Currency Operations Department, Ahmed Umar.
According to him, the existence of such banknotes in the economy falsifies the true value of the currency in circulation and could also be an avenue for fraudulent activities.
The directive took effect from April 1,this year,he said.
The circular said:“The management of the CBN observed with concern the increasing 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 falsifies the true value of the currency in circulation, and can also be an avenue for fraudulent activities.Consequently, any composed banknote discovered in the deposit of DMBs shall attract a penalty of 400 per cent of the value.’This circular takes effect from 1st April 2022.’’
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