April 13, 2024

CBN’s denies directive to commercial banks to accept old N500, N1000 notes

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CBN’s denies directive to commercial banks to accept old N500, N1000 notes

*Bankers committee conflicts with CBN counter directive on old notes

*We did not give such directive – CBN

There seems to be a raging confusion over a directive said to be part of a resolution of the Bankers Committee to commercial banks to accept the old N500 and N1000 notes to individuals.

The meeting of the bankers’ committee of the CBN was said to have resolved that the old N500 and N1000 notes can be deposited into commercial banks only once within the 60 days period of extension.

It was however not clear whether strange resolutions were smuggled into the outcome of the meeting.

The Bankers Committee comprises the Chairman of the Central Bank, Godwin Emefiele, Directors of the CBN, and the chief executive of the deposit money bank.

The crucial committee is saddled with the responsibility of policy formulation and seeking solutions to the problems associated with the banking sector in the country.

The committee in its meeting on Friday was said to have resolved that the CBN develops a new App to enable customers to deposit to make a single deposit within the 60-day period.

There was a clause in the committee resolution that a customer cannot make more than N500,000 deposit during the period of the extension.

The committee was said to have added the proviso that any customer making a deposit of more than N500,000 would be required to visit the CBN.

It was further stated that the value of money deposited will not be immediate as it would go through a process of screening at the CBN.

The committee further decided that customers can only receive value for their money upon remittance and confirmation from CBN.

In consonance with the President’s directive, the committee resolved that the old N200 notes will function as legal tender till April 10 which means that the old N200 note will feature as legal tender along aside the new denominations of N200, N500, and N100 till April 10, when it ceases to be legal tenders

The Key highlights from the Banker’s Committee meeting held on Friday on the Naira Redesign policy of the CBN are listed below:

1. The old 200 naira will still be legal till April 10th, 2023.

2. The old 200 naira and the new 500 and new 1000 will continue to be in circulation till the 10th of April 2023.

3. The old 500 and 1000 can be deposited into a commercial bank just once within the 60days extension.

4. A new App will be developed by CBN to enable customers to make the one-off deposit within the extended 60 days.

5. A customer cannot make more than 500k deposit within this period and it cannot be split.

6. Customer making above 500k will have to visit the CBN.

7. You cannot receive value for the deposit immediately because the money will go to a CBN GL.

8. You can only receive value Upon remittance and confirmation from CBN.

However, the issue of the acceptance of the old N500 and N1000 which conflicted with the President’s broadcast to the nation had become contentious.

Shortly after the highlights of the meeting of the bankers’ committee were released to the banks, the Central Bank of Nigeria denied authorizing Deposit Money Banks to collect the old N500 and N1000 bank notes.

The bank in a terse statement by the Director, Corporate Communications, Osita Nwanisobi, said that the deposit money banks are only authorized to reintroduce the old N200 notes in accordance with the directives contained in President Buhari’s broadcast to the nation on February 16.

“The attention of the Central Bank of Nigeria has been drawn to some fake and unauthorized messages quoting the CBN as having authorized the Deposit Money Banks to collect the old N500 and N1,000 Banknotes. For the avoidance of doubt, and in line with Mr. President’s broadcast of February 16, 2023, the CBN has been directed to ONLY reissue and recirculate the old N200 banknotes and this is expected to circulate as legal tender for 60 days up to April 10, 2023.

“Members of the public should therefore disregard any message and/or information not formally released by the Central Bank of Nigeria on this subject.

“Media practitioners are advised to PLEASE verify any information from the correct sources before publication,” the statement read

As a follow-up to the outcome of the Bankers Committee meeting, banks in cities across the nation generated internal memos in which they alerted their customer of their willingness to accept the old notes to a maximum of N500,000 notes.

The Network investigations revealed that the banks made provision for Saturday Desk to attend to customers when the statement denying the Bankers Committee’s resolution got to them.

Many of the banks hurriedly pulled down the earlier directive in confusion.

“This is to inform you that our branches shall receive old notes up to a maximum of N500,000 (Five Hundred Thousand Naira) after registration on the CBN portal.

Please note that deposits of more than N500,000 (Five Hundred Thousand Naira) should be taken to the nearest CBN Location

“In addition, our branches will be open tomorrow, Saturday 18 February 2023 to receive old notes.” A first-generation Bank wrote to its customers.

Some of the banks alerted their customer in email messages that they are still collecting the old notes.

On Friday evening, some senior staff of banks told the Network that they are confused and awaiting further directives having been assigned to Saturday desks to collect the old notes.

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