The Central Bank of Nigeria (CBN) has read the riot act against Deposit Money Banks (DMBs) and Point of Sale (PoS) operators against cash hoarding and disrupting the seamless distribution of Naira notes.
According to a statement by CBN’s Acting Director, Corporate Communications, Mrs Hakama Sidi-Ali, failure to comply with the warning will attract severe sanctions.
Sidi-Ali said that the apex bank was currently investigating reported cases of collusion by DMBs and the PoS operators, which were capable of undermining the smooth running of the economy.
“The attention of the CBN has been drawn to alleged cases of collusion between some DMBs and PoS operators affecting the availability of cash and disrupting the seamless circulation of the Naira.
“The CBN frowns at such inappropriate actions by certain individuals and is investigating the reported cases capable of undermining the smooth running of the economy.
“The CBN has, therefore, warned banks and PoS operators to desist from such activities as relevant sanctions shall be meted out to those found wanting,” she said.
She encouraged members of the public to make alternative payment channels, and to report cases of unauthorised activities like hoarding and capping by DMBs, PoS operators to the nearest CBN branch.
Some officials of DMBs also claimed that the DMBs were not getting adequate supply of cash from the CBN.
But, in an earlier statement, the apex bank assured that there was no shortage of Naira notes, as there was adequate supply of the currency in the economy, hinting rather on cash hoarding by DMBs aand POS operators.
The apex bank had explained that the seeming currency scarcity was occasioned by large volume withdrawals of cash from various CBN branches by DMBs.
It said that panic withdrawals by bank customers was also partly responsible for the seeming scarcity.