Post Views: 90 The Central Bank of Nigeria (CBN) has released guidelines for the disbursement of lower denominations of the Naira through microfinance...
The Central Bank of Nigeria (CBN) has released guidelines for the disbursement of lower denominations of the Naira through microfinance banks (MFBs) across the country.
According to a circular by the Director, Currency Operations Department of the Bank, Mrs. Patricia Eleje in Abuja on Thursday, August 15, 2019, all microfinance banks must however have a composite risk rating (CRR) of above average in the most recent Risk-Based Supervision (RBS) target examination to be considered for the scheme.
This, the CBN believes, will ensure that only MFBs with good corporate governance practices take part.
Meanwhile, participating MFBs must be willing to accept a mixture of new and other banknotes, just as they shall give 20% of any withdrawal in lower denomination notes subject to a maximum of ₦50,000.
Where beneficiaries withdraw more than once, the circular expects that disbursement will only apply to one transaction per day.
Similarly, the MFBs are allowed to exchange notes subject to a maximum of ₦50,000 for customers with bank accounts and ₦10,000 for customers without bank accounts.
Consequently, banks must not exchange for the same beneficiaries more than once a week.
Also, the CBN circular expects MFBs to maintain a register of amounts they received through their correspondent commercial banks and another register of beneficiaries of the lower denomination notes, besides ensuring that withdrawal teller slips contain a breakdown of the denomination of the currency to customers with accounts.
It, however, warned MFBs against hawking, hoarding or using of funds obtained under the intervention for any other purpose, just as it called for 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.