The Central Bank of Nigeria (CBN) has announced that it will impose penalties on banks that refuse to accept dirty or mutilated naira notes. This decision was outlined in a circular to banks dated June 28, titled “Penalties For Rejection Of Overcirculated/Mutilated Banknotes By Deposit Money Banks.”
The CBN stated, “The Central Bank of Nigeria (CBN) has received several reports of rejection of dirty/mutilated Naira banknotes by some Deposit Money Banks (DMBs). Consequently, it has become imperative to remind DMBs that the CBN circular dated July 2, 2019, reference number COD/DIR/GEN/CIR/01/006, which prescribes penalties for the rejection of Naira banknotes, is still enforceable and binding on erring DMBs.”
The bank emphasized that it will not hesitate to apply strict sanctions on DMBs reported to have rejected deposits of naira banknotes from the public under any guise.
In its clean note policy published in 2018, the CBN described a mutilated banknote as a poor-quality banknote that requires special examination to determine its value. The note could be partially or permanently damaged by fire, water, dye, insects, rodents, or destroyed by natural disasters.
The CBN reiterated, “The Central Bank of Nigeria and deposit money banks (DMBs) shall continue to receive mutilated notes from the public.”
