CBN makes a U-turn, directs the use of old 500,1000 naira notes

 

The Central Bank of Nigeria has directed banks to commence the collection of the old N500 and N1,000 notes from the public with immediate effect.

 

It, however, pegged the maximum amount the banks can collect at N500,000.

 

The CBN maintained that the old currencies were no more legal tender.

A source at the Bankers Committee meeting held on Friday revealed that the CBN ordered the banks to collect the cash instead of people going to the CBN office following difficulties encountered in getting access to the bank.

 

A viral video surfaced on Friday showing a large crowd of people at the CBN’s Lagos office on Customs Street.

A CBN official said, “Go to your bank but fill out the form before you go. Go with the reference code you generate. With your code, banks will collect it from you. But if it is more than 500,000, you will go to the CBN and deposit it.”

 

The meeting also resolved that banks will continue to pay customers with the 200 naira old bills alongside the new redesigned N200, N500, and N1000 notes until 10th April.

 

Customer will have to complete their details on the CBN app for cash deposits with the required information, walk into the banking hall and deposits a maximum of N500,000 once between now and 10th April 2023.

 

However, such customers are not allowed to split the maximum cash deposit amount of N500,000 that is, a customer is not allowed to deposit N100,000 today and another N200,000 tomorrow, this approval is one-off as customers are not allowed to deposit more than once within the 60 days timeline.

 

The source also revealed that one-off Cash Deposits between 0 – 500k will not be immediately credited into the customers account but passed through the CBN STC -Subject to Count GL and the customer’s account credited upon receipt of value from CBN.

 

It was also resolved that payments above the current withdrawal limit to Government agencies for security and other ancillary uses must be approved by CBN. This also includes individuals and corporate bodies.

 

Customers making deposits above N500,000 are to visit the nearest CBN locations to deposit their cash while banks to ensure that they have adequate KYC and enhanced due diligence of the customers making the cash deposits.

 

The CBN also directed that adequate and proper records must be kept by banks as the relevant government agencies including ICPC, DSS, EFCC will be reviewing their records.

 

Recalls that earlier, the CBN opened a portal on its website and made it mandatory for those willing to return old notes to fill and generate a code.

 

On Thursday, the CBN Governor, Godwin Emefiele, ordered the banks to make the old N200 notes available to Nigerians.

 

President Muhammadu Buhari said the old N200 note would be legal tender till April 10, 2023, while urging Nigerians to deposit their old N500 and 1000 notes with the CBN.

However, protests which had been rocking different states over the scarcity of the new naira notes made the CBN order banks to collect higher denominations after meeting with banks’ leaders.

 

Some state governors have also challenged the Federal Government’s position asking residents to continue using the old naira notes which are no longer legal tender.