The Central Bank of Nigeria (CBN) says it has released guidelines for
the disbursement of lower denominations of the Naira through
microfinance banks (MFBs) across the country.
The bank’s Director, Corporate Communications Department, Mr Isaac
Okorafor, made this known in a statement in Abuja on Thursday.
Okorafor said this development was contained in a circular issued by
the Director, Currency Operations Department of the bank, Mrs Patricia
Eleje, in Abuja on Thursday.
He explained that the circular indicated that all microfinance banks
must have a Composite Risk Rating (CRR) of above average in the most
recent Risk Based Supervision (RBS) target examination before they were
considered for the scheme.
He explained that the measure was to ensure that only MFBs with good corporate governance practices took part, NAN reports.
“Meanwhile, the participating MFBs must be willing to accept a
mixture of new and other banknotes, and that the MFBs shall give 20 per
cent of any withdrawal in lower denomination notes subject to a maximum
of N50,000.
“Where beneficiaries withdraw more than once in a day, the circular
said that disbursement will only apply to one transaction per day.
“Similarly, the MFBs are allowed to exchange notes subject to a
maximum of N50,000 for customers with bank accounts and N10,000 for
customers without bank accounts.
“In that situation, the banks must not exchange for same beneficiaries more than once a week,” he added.
According to him, MFBs are to maintain a register of amounts received from the CBN through their correspondent commercial banks.
Okorafor said the MFB must also maintain another register of the
beneficiaries of the lower denomination notes as well as ensure that
withdrawal teller slips contain breakdown of the denomination of the
currency to customers with accounts.
“The circular also warned MFBs against hawking, hoarding or using of
funds obtained under the intervention for any other purpose.
“It also instructed the banks to put in place effective control
measures that will ensure that banknotes disbursed to customers with or
without accounts are not sold.
“Furthermore, the circular directed the banks to render weekly and
monthly disbursement return to CBN branches where the intervention would
be monitored periodically, and appropriate sanctions applied to erring
MFBs,” he said.