Naira Re-Design Policy: Nigeria’s Apex Bank Writes All Banks

LETTER TO ALL BANKS

RE: IMPLEMENTATION OF NAIRA RE-DESIGN POLICY

Further to the Emergency Bankers’ Committee meeting held on Friday, October 28, 2022 and as part of arrangements to ensure seamless implementation of the new currency re-design policy, the Central Bank of Nigeria (CBN) has approved the following interim measures:

1. There shall be no charge on cash deposits by customers above the threshold specified under the Cash-less Policy effective October 26, 2022.

2. The requirement for cash evacuation to CBN branches using armoured bullion vans is temporarily waived in view of the anticipated large volume of cash deposits to be evacuated vis-a-vis the limited capacity of registered Cash in Transit companies. Banks may convey cash using other transportation arrangements but shall bear the associated risks.

3. Deposit of mutilated notes in the denominations covered under the dispensation (N200, N500 & N1,000 denominations) shall be permitted without any fees. All mutilated notes received will be processed in due course to check for counterfeit, forged or composed notes and banks shall be responsible for any defective notes and shortages in line with extant regulations.

4. The following charges are hereby temporarily waived until January 31, 2023:

a. Penalty for cash shortages by banks at CBN branches. However, all banks shall continue to bear the responsibility for meeting any cash shortages. b. Charges for deposits that are not in CBN approved cash boxes.

Furthermore, banks are to note the following:

a) Banks’ currency processing centers shall remain open from Monday to Saturday to accommodate all cash that will be deposited by customers.
Classified as confidential

b) No cash deposit by any customer should be rejected provided such deposits are lodged into an account with a BVN.

c) All deposits by new or walk-in customers should be accepted by banks subject to compliance with the requisite account opening documentations and KYC requirements.

d) No deposit should be boxed and or credited to any suspense account, general ledger or any other internal account of a bank.

e) All cash deposits, including mutilated notes must be lodged at only CBN branches.

Deposits should not be lodged with Bankers Warehouse or any other service providers.

f) Splitting of deposits is not permitted under any circumstance. All unusually large deposits should be paid into customers’ accounts with BVNs as a bulk amount.

g) Banks shall cease to load their ATMs with old Naira notes from January 31, 2023, as the old Naira bills shall cease to be legal tender from that date.

h) Banks are required to ensure full compliance with extant AML/CFT regulations on reporting of currency and suspicious transactions.

i) Banks shall ensure that customers are promptly attended to and well treated to avoid delays and long queues/congestion at banking halls

j) Banks shall deploy measures to detect fake or counterfeit notes and avoid any form of competition to ensure a smooth implementation of the policy.

Finally, banks are required to furnish the CBN with their daily vault cash position effective October 26, 2022 in line with the attached template.

The first set of returns up to November 1, 2022 is due before close of business on November 2, 2022. Thereafter, banks are to provide the daily returns on their cash position on or before 10.00am of the business day following the reporting date. The returns shall be submitted to BSDReturnscbn.gov.nq and BSD Group5Mailinqcbn.gov.ng.

The CBN shall monitor to ensure strict compliance with the above measures. Please be guided accordingly.

HARUNA B. MUSTAFA
DIRECTOR OF BANKING SUPERVISION