CBN Conducts A Cash Swap Scheme In All LGAs Using New Naira Notes
The amended cash withdrawal limit regulation permits designated agents to collect the redesigned notes from DMBs.
The Central Bank of Nigeria (CBN) has begun a cash swap scheme in all of Nigeria’s local government areas as part of measures to facilitate the use of its new naira notes.
The CBN recently started awareness campaigns in markets all around Nigeria to inform people about the new notes. It also pledged to punish any commercial bank discovered hoarding the new notes earlier in the week.
By the end of January, it is anticipated that the outdated notes will no longer be in use.
The new cash swap scheme will begin on Monday, January 23, 2022, according to the apex bank. The old N1000, N500, and N200 notes can be exchanged for the newer, redesigned notes, as well as the smaller denominations that are still in circulation (N100, N50, and N20, for example). The agent is only allowed to trade up to N10,000 per customer. In accordance with the cashless policy, amounts over N10,000 may be recognized as cash-in deposits into wallets or bank accounts. Customers’ BVN, NIN, or voter’s card information should be recorded as completely as feasible.
This service is accessible to everyone who does not have a bank account in order to promote financial inclusion.
Using the CBN Tiered KYC Framework, agents can rapidly open a wallet or account upon request. This will make sure that this group of people may swap or deposit their cash without taking unneeded risks or paying excessive fees, the bank added.
The bank added that representatives will educate clients on how to open wallets, bank accounts, and the various platforms for carrying out electronic transactions.
According to the amended cash withdrawal limit policy, “designated agents are eligible to collect the redesigned notes from DMBs,” the bank stated.
Agents are allowed to charge cash-out fees for cash swap transactions, but they are not allowed to charge customers any additional commissions for this service.
According to the bank, these agents will provide weekly reports to the banks they have chosen detailing the cash swap transactions, and the banks will provide the same information to the CBN on a weekly basis.
The circular states that “Principals (super agents, MMOs, and DMBs) must be held accountable for their agents’ adherence to the foregoing rules.”