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CBN launches cash swap programme in rural areas

The Central Bank of Nigeria, CBN, has launched a cash swap programme in partnership with super agents and deposit money banks, DMBs, to enable Nigerians in rural areas or those with limited access to formal financial services to exchange old naira notes for redesigned notes.

The apex bank in a circular addressed to all deposit money banks, mobile money operators, MMOs, super agents and agents; and jointly signed by its Director, Banking Supervision Department, Haruna B. Mustafa, and Director of Payment System Management Department, Musa Jimoh, said the policy takes effect from Monday, January 23, 2023.

The initiative follows the January 31, 2023 deadline to end the circulation of old naira notes after the implementation of the naira redesign policy, to maximise the channels through which underserved and rural communities can exchange their naira.

The bank said the cash swap programme is in partnership with super agents and deposit money banks, DMBs.

“The initiative takes effect from Monday, January 23, 2023 as follows 1. The old N1000, N500, N200 notes can be exchanged for the newly redesigned notes and/or the existing lower denominations (N100, N50 and N20, etc) which remain legal tender

“2. The agent shall exchange a maximum of N10,000 per person. Amounts above N10,000 may be treated as cash-in deposit into wallets or bank accounts in line with the cashless policy BVN, NIN, or Voter’s card details of the customers should be captured as much as possible

“3. To promote financial inclusion, this service is also available to anybody without a bank account. Agents may, on request instantly open a wallet or account, leveraging the CBN Tiered KYC Framework. This will ensure that this category of the populace are able to exchange or deposit their cash seamlessly without taking unnecessary risk or incurring undue cost

“4. Agents shall sensitize customers an opening wallets bank accounts and the various channels for conducting electronic transactions.

“5 Designated agents are eligible to collect the redesigned notes from DMBS in line with the Revised Cash Withdrawal Limit policy Agents are also permitted to charge cash- out fees for the cash swap transactions but prohibited from charging any further commissions to customers for this service

“6. Agents shall render weekly returns to their designated banks regarding the cash swap transactions DMBS shall in tum render some to the CBN on a weekly basis. 7. Principals (Super Agents, MMOs DMBS) shall be held accountable for their agents adherence to the above guidelines,” the circular read.

It further noted that cash swap agents will be readily identifiable in all local governments, particularly those in the rural areas, adding that the CBN will continue to monitor implementation of the programme and provide further guidance as may be necessary.

The Central Bank of Nigeria, CBN, has launched a cash swap programme in partnership with super agents and deposit money banks, DMBs, to enable Nigerians in rural areas or those with limited access to formal financial services to exchange old naira notes for redesigned notes.

The apex bank in a circular addressed to all deposit money banks, mobile money operators, MMOs, super agents and agents; and jointly signed by its Director, Banking Supervision Department, Haruna B. Mustafa, and Director of Payment System Management Department, Musa Jimoh, said the policy takes effect from Monday, January 23, 2023.

The initiative follows the January 31, 2023 deadline to end the circulation of old naira notes after the implementation of the naira redesign policy, to maximise the channels through which underserved and rural communities can exchange their naira.

The bank said the cash swap programme is in partnership with super agents and deposit money banks, DMBs.

“The initiative takes effect from Monday, January 23, 2023 as follows 1. The old N1000, N500, N200 notes can be exchanged for the newly redesigned notes and/or the existing lower denominations (N100, N50 and N20, etc) which remain legal tender

“2. The agent shall exchange a maximum of N10,000 per person. Amounts above N10,000 may be treated as cash-in deposit into wallets or bank accounts in line with the cashless policy BVN, NIN, or Voter’s card details of the customers should be captured as much as possible

“3. To promote financial inclusion, this service is also available to anybody without a bank account. Agents may, on request instantly open a wallet or account, leveraging the CBN Tiered KYC Framework. This will ensure that this category of the populace are able to exchange or deposit their cash seamlessly without taking unnecessary risk or incurring undue cost

“4. Agents shall sensitize customers an opening wallets bank accounts and the various channels for conducting electronic transactions.

“5 Designated agents are eligible to collect the redesigned notes from DMBS in line with the Revised Cash Withdrawal Limit policy Agents are also permitted to charge cash- out fees for the cash swap transactions but prohibited from charging any further commissions to customers for this service

“6. Agents shall render weekly returns to their designated banks regarding the cash swap transactions DMBS shall in tum render some to the CBN on a weekly basis. 7. Principals (Super Agents, MMOs DMBS) shall be held accountable for their agents adherence to the above guidelines,” the circular read.

It further noted that cash swap agents will be readily identifiable in all local governments, particularly those in the rural areas, adding that the CBN will continue to monitor implementation of the programme and provide further guidance as may be necessary.

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