The Central Bank of Nigeria (CBN) has warned Deposit Money Banks to stop bringing mutilated currency notes also known as composed banknotes as part of their deposits with the apex bank.
According to a circular issued by Ahmed Umar, Director, Currency Operations Department of CBN, the order takes effect from April 1.
Mr Umar said that the existence of such banknotes in the economy falsified the true value of currency in circulation, and could also be avenue for fraudulent activities.
He said that henceforth, composed banknotes discovered in the deposit of DMBs shall attract a penalty of 400 per cent of the value.
“The management of the CBN observed with concern the increase 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 falsify the true value of currency in circulation, and can also be avenue for fraudulent activities.
“Consequently, any composed banknote discovered in the deposit of DMBs shall attract penalty of 400 per cent of the value,” he said.
