CBN orders banks to stop over-the-counter withdrawal of new naira notes with immediate effect
The Central Bank of Nigeria (CBN) has ordered Deposit Money Banks to immediately stop the payment of the new naira notes to customers who are making over-the-counter withdrawals.
The apex bank, instead, directed that the banks should rather load their Automated Teller Machines (ATMs) with only new notes to ensure that the currency circulates across the country ahead of the January 31, 2023 deadline when the old notes will no longer be legal tender.
Recall, Gentechnews on 31st December 2021 reported the news under the headline, “Banks defy directive of CBN, continue to receive, churn out old notes to customers.”
This development might not be unconnected with the avalanche of reports of frustrations expressed by the general public who have been experiencing difficulty in having access to these new naira notes three weeks to the expiration of the deadline.
The CBN memo, which was titled, ‘Urgent update on currency redesign’ and signed by the Group Head, Retail Operation, stated, “The CBN has mandated that we immediately stop the Over-the-Counter payment of the new N200, N500 & N,1000 currency. Instead, all new notes should be loaded into the ATMs for customer withdrawals.
“This is effective immediately please.”
Gentechnews gathered that due to the scarcity or inadequate supply of these new naira notes majority of Nigerians and many stakeholders have called on the CBN to extend the January 31 deadline as it will not be feasible for these new notes to adequately circulate around the country at that time.
Investigations by Gentechnews showed that most of the ATMs of different banks visited at Lagos and Delta States, as at Friday, were still dispensing only old and sometimes dirty N1,000 and N500 notes to customers, who lined up in a queue at the galleries, while customers at the counters were only given old notes in all denominations.
A bank staff who crave anonymity explained that initially they were given two pieces of new naira notes with the old ones at every withdrawal done at the counter, but now they don’t have the new naira notes any more.
“CBN should provide more new naira notes in order to meet their deadline, else there will be a need to extend the deadline for the old note to remain a legal tender,” he added.
According to a report from Punch, this directive is contained in a memo issued by the CBN to the banks on Wednesday, where it ordered that the implementation of this must commence immediately.
Banks complain of inadequate supply of new notes
However, the report suggests that the banks are yet to comply with this directive as of Friday with complaints of inadequate supply of the new notes, prompting them to load their ATMs with the old notes.
