The Central Bank of Nigeria (CBN) has announced stringent penalties for Deposit Money Banks (DMBs) found diverting cash to hawkers, as part of its ongoing efforts to ensure responsible currency distribution.
In a circular dated November 13, 2024, the apex bank stated that any bank linked to cash seized from hawkers would face a 10% fine on the total value of the withdrawn funds.
Subsequent violations will attract an incremental penalty of 5%.
The circular, signed by Muhammad J. Olayemi, Acting Director, Currency Operations Department, emphasised that these measures aim to curb the abuse of naira notes and promote an efficient cash distribution system.
It reiterated the CBN’s commitment to enforcing its Clean Note Policy, which seeks to maintain the integrity of the naira by ensuring proper handling and circulation of banknotes.
Clampdown on cash hoarding and diversion
The CBN also warned DMBs against cash hoarding and diversion, noting that such practices undermine access to cash,…