.Penalty attracts 400% of currency value
The Central Bank of Nigeria (CBN) warned that Deposit Money Banks (DMBs) risk a penalty of 400% if they do not desist from bringing mutilated notes as part of their deposits with it, effective April 1.
The warning is contained in a circular on “composed banknotes” issued by the Director, Currency Operations Department, CBN, Ahmed Umar.
Umar said the existence of such banknotes in the economy falsified the true value of the currency in circulation, and could also be an avenue for fraudulent activities, warning that henceforth, composed or mutilated banknotes discovered in the deposit of DMBs shall attract 400% of the value.
The News Agency of Nigeria (NAN) reports that 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.
“The management of the CBN observed with concern the increased number of composed banknotes deposited by DMBs and requests 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 penalty of a 400 per cent of the value,” he said.
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.
