April 03, (THEWILL) – The Central Bank of Nigeria (CBN) has warned Deposit Money Banks (DMBs), to stop bringing “composed banknotes” as part of their deposits with the apex bank.
Composed banknotes are mutilated currency notes, comprising several parts of different banknotes of the same denomination.
The parts of such currency notes are usually put together with the intention of receiving value.
But the apex bank in a circular issued by its Director, Currency Operations Department of CBN, Ahmed Umar, said the existence of such banknotes in the economy falsified the true value of currency in circulation, and could also be an avenue for fraudulent activities.
He said that henceforth, effective April 1, composed banknotes discovered in the deposit of DMBs shall attract a penalty of 400 percent of the value.
“The management of the CBN observed with concern the increased number of composed banknotes deposited by DMBs and requested for replacement of such banknotes by members of the public.
“The existence of composed banknotes in the economy falsifies the true value of currency in circulation, and can also be an avenue for fraudulent activities.
“Consequently, any composed banknote discovered in the deposit of DMBs shall attract a penalty of 400 percent of the value”, the circular read.
