On Thursday (today), Deposit Money Banks will provide the newly redesigned naira notes to their customers for use in over-the-counter transactions.
About three weeks prior, at the Federal Executive Council meeting held in Aso Rock Villa, President Major General Muhammadu Buhari (retd) unveiled the new bills.
The revised N200, N500, and N1,000 notes were unveiled by the President.
Godwin Emefiele, the governor of the Central Bank of Nigeria, had previously stated in October that the apex bank will issue newly designed naira notes by December 15, 2022.
Additionally, he stated that as of January 31, 2023, the old notes would no longer be accepted as legal cash.
Emefiele emphasized that the redesign of the naira notes would aid in reducing ransom payments to terrorists and kidnappers as well as counterfeit notes.
The head of the CBN said it was concerning that Nigerians were hoarding 85% of the entire amount of cash in circulation.
He added that out of the about N3.3 trillion in circulation, nearly N2.75 trillion were outside the banking sector and that the redesign of the local currency will help to mop up the currency outside the banking sector.
Top commercial bank executives told our correspondent on Wednesday that they had received the new notes from the CBN a few days prior and that their customers will start receiving the redesigned money on Thursday (today).
“We only received the money (new notes) a couple of days ago. The money has been sent from our central office to numerous regional offices across the nation. My branch will go to a nearby office to pick up our allocation. By Thursday, we’ll begin distributing the new notes to our clients.
based on information provided on Wednesday by a senior representative of a commercial bank who spoke to one of our correspondents under the condition of anonymity because he was not authorized to do so.
The new notes had arrived, according to numerous banking sources, and were being stored in their vaults.
They stated that starting on Thursday, the new notes would be distributed to consumers in the banking halls.
The new notes have arrived, and consumers will be able to purchase them starting tomorrow (Thursday), according to a Polaris Bank representative who asked to remain anonymous.
Additionally, a First Bank Plc manager who was not authorized to talk on the subject stated, “We got the monies from the CBN presently. It arrived a few days ago, but users will have access to it starting on Thursday.
The quantity of the fresh notes made available to the various banks by the CBN, according to several bank executives, was little.
They claim that because the number of the new notes still being made accessible is so minimal, the majority of OTC payments will still need to be made using the old notes.
“The amount provided to us is insufficient in light of our needs. For instance, my branch has access to less than N1m. When compared to what we need, this is little. However, I think it will rise with time, an FCMB representative in Lagos told one of our correspondents while asking to remain anonymous.
Several financial sources have reported that they had begun reprogramming their ATMs to recognize the new naira notes.
“Most of the banks have started redesigning their ATMs so that they can detect the new notes of N1000, N500, and N200,” claimed a top bank executive.
The overall amount to be released into circulation may not be as much as the amount already in circulation, according to CBN data.
Under the condition of anonymity, a senior CBN official stated that the organization intended to encourage electronic payments rather than cash transactions.
He claims that the CBN won’t be printing many of the new notes.
The CBN has began distributing the new naira notes to the banks, but it doesn’t plan to distribute a lot of them because it wants to promote electronic payments.
“Don’t think that there will be a huge circulation of the new notes in the economy. The public ought to use a variety of electronic channels.
They anticipate EmefieleIf
nothing unexpected changes, the House of Representatives will question Emefiele about the new cash withdrawal limits policy, which limits OTC payments for individuals and businesses to N100,000 and N500,000, respectively, on Thursday (today).In a document outlining the new policy, the CBN stated that third-party checks valued at more than N50,000 would no longer be eligible for OTC payment, although the current clearing check limitations of N10 million would still apply.
The circular further instructed banks to limit ATM withdrawals to N20,000 per day and to load only N200 and smaller denominations onto their machines. Additionally, PoS terminal withdrawals were restricted to N20,000 per day.
The CBN reiterated last Wednesday that PoS operators could seek for a waiver. The regulation, which will go into force on January 9, 2023, has drawn criticism.
The CBN governor was called before the House last Thursday to discuss the policy.
On Wednesday, one of our correspondents was informed by House of Representatives sources that Emefiele was scheduled to appear in the chamber.
Senate supports CBN
On Wednesday, the Senate requested that the CBN review the recently implemented cash withdrawal limitations policy.
Furthermore, it instructed the Committee on Banking, Insurance, and Other Financial Institutions to vigorously monitor the central bank.
Senator Uba Sani (APC Kaduna Central), the committee’s chairman, made the case in the report that the CBN’s proposed cash withdrawal limits policy was well thought out for the transformation of the country’s economy. He noted that the action is consistent with the apex bank’s mandate as outlined in Sections 2(d) and 47 of its current Act.