CBN issues banknote fitness standard, withdraws bad notes from circulation

The Central Bank of Nigeria (CBN) has published the guidelines on banknotes’ fitness and tasked all deposit money banks, microfinance banks and other cash handlers to comply with the directive.  The CBN also indicated that all unfit notes should be returned to its coffers for destruction or recycling.

The guidelines’ directive issued by the Currency Operations Department of the CBN was co-signed by Mrs. Priscilla E. Eleje, Director, Currency Operation Department, and Mr. Folashodun A. Shonubi, Deputy Governor, Operations.

The banknotes fitness guidelines, among other things stipulate the quality standards and guidelines for banknotes production and recirculation, the standardised quality criteria for sorting of banknotes and guide to all participants in the currency management industry and the processes of removal of unfit banknotes in circulation.

The guideline noted that the quality of banknotes must be checked in the course of withdrawal by all the major cash handlers. The Deposit Money Banks (DMBs) and third party service providers are advised to adhere strictly to the provisions of the guidelines as any violation would attract appropriate sanctions, it said.

The Central Bank of Nigeria would periodically gauge the effectiveness and compliance with the banknote fitness standard, according to the directive. The Currency Operations Department would conduct routine monitoring of cash handlers with a view to determining their adherence to the specifications of the fitness standard, it said.