As part of efforts to facilitate the circulation of its new naira notes, the Central Bank of Nigeria (CBN) has launched a cash exchange program in local government areas in Nigeria.
The apex bank made the announcement on Friday in a letter addressed to all DMBs, mobile money operators (MMOs), super agents and agents.
The apex bank said the cash exchange program is in partnership with super agents and deposit money banks (DMBs) in various countries. Super agents refer to companies licensed by the CBN to recruit for agency banking purposes.
In recent times, the CBN launched a sensitization campaign in markets across Nigeria to educate citizens about the new notes. Earlier this week, it also vowed to sanction commercial banks found to be storing new notes.
The old notes are expected to go out of circulation by the end of January.
Cash Swap
Meanwhile, the apex bank said that the new cash exchange program will take place from Monday, January 23, 2022. The bank said that the old N1000, N500, N200 notes can be exchanged for the newly redesigned notes and existing lower denominations (N100, N50 and N20 , etc) that remain valid.
“Agents must redeem a maximum of N10,000 per person. Amounts above N10,000 can be treated as cash deposits into wallets or bank accounts in line with the cashless policy. The customer’s BVN, NIN or Voter card details must be obtained as soon as possible.
“To promote financial inclusion, this service is also available to anyone who does not have a bank account. Agents can, upon request, immediately open a wallet or account, using the CBN Tiered KYC Framework. This will ensure that this category of population can exchange or deposit cash seamlessly without taking unnecessary risks or incurring unnecessary fees,” the bank said.
The bank also said agents will sensitize customers about opening wallets, bank accounts and various channels to conduct electronic transactions.
“Designated agents are eligible to collect the redesigned notes from DMB in line with the revised cash withdrawal limit policy,” the bank said.
“Agents are also allowed to charge cash fees for cash swap transactions but are prohibited from charging commissions back to customers for this service.”
READ ALSO: EDITORIAL: New naira notes and CBN policies
The bank said the agents would generate weekly returns to designated banks on cash exchange transactions, while the banks would submit weekly returns to the CBN.
“Principals (super agents, MMOs, DMBs) must be responsible for agents complying with the above guidelines,” the circular said.
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