Stop surcharging commercial banks on mutilated notes Reps tell CBN

The House of Representatives on Thursday urged Central Bank of Nigeria (CBN) to stop the imposition of surcharge on commercial banks which bring dirty, worn-out and mutilated notes for destruction and re-issuance of new notes.

The resolution was passed following the adoption of a motion sponsored by Sergious Ogun (PDP-Edo), who expressed concern over the continued circulation of dirty and mutilated notes across the country.

Leading debate on the motion, the Edo lawmaker noted that section 20 of the CBN Act, 2007 provides that the currency notes and coins issued by the apex bank shall be approved medium of exchange and accepted for all transactions.

He decried the widespread circulation of dirty, mutilated and worn out notes contrary to the requirement that they be replaced by commercial banks when they are worn out or defaced as long as the CBN’s and treasury’s serial number can still be seen on the notes.

“The continuous circulation of worn out notes calls for concern and also raises the need for close investigation and constant monitoring process of destruction of the notes, as continued printing of new currency notes without destroying mutilated notes contributes to the inflationary trend in the economy,” Ogun said.

He said the practice of rejecting mutilated notes by banks is as a result of the refusal of the CBN to recycle the old and defaced notes, and it even imposes ludicrous charges on commercial banks, which serve as central collection points for CBN to effectively carry out its functions under Section 18(d) of the CBN Act.

While ruling on the motion, Speaker Yakubu Dogara mandated the Committee on Banking and Currency chaired by Jones Onyereri to liaise with the apex bank with the view to harness the modalities for handling, returning and destroying damaged and mutilated notes and report back within eight weeks for further legislative action.

 

KEHINDE AKINTOLA, Abuja