The Central Bank of Nigeria (CBN) has named five money deposit banks to participate in its cash swap initiative.
The development comes as the deadline for the expiration of old N200, N500 and N1,000 notes as legal tender approaches.
Lagos and Abuja PoS operators left out of cash swap programme
The information was contained in an Frequently Asked Questions (FAQ) document released by the CBN on Monday, January 23, 2023, where the it detailed the procedure for the cash swap programme.
The banks chosen for the initiative include Zenith Bank, Access Bank, First City Monument Bank, First Bank and United Bank for Africa. Also, the CBN barred PoS operators in Lagos and Abuja from participating in the programme.
According to the directive by the CBN, not all agents can participate as the initiative is open to only selected agents profiled by super agents or Mobile Money Operators (MMO) and participating banks.
The bank added that selected agents in all the states in Nigeria, excluding Lagos and Abuja, can participate in the programme. It was learnt that PoS operators are barred from using the new notes for other transactions, just for the scheme.
The Punch reported that the document said agents can obtain the new notes from the selected banks but they must have accounts with the banks, and their super agents must have pre-registered the operator with the bank where they have accounts.
Criteria for agents to participate
Each agent’s name, Bank Verification Number (BVN) and operator’s name are needed before the new notes are issued, adding that the participating banks should also verify the agent’s picture and fingerprint. Agents must also have completed the KYC levels for the operator which includes name, phone number, bank, account number and amount.
The document also stated that there is no limit to the amount a customer can deposit but restricts withdrawals to N10,000 per customer under the cash swap scheme.
The apex bank asked agents to open a bank account or wallet for customers who have bank accounts.
Before Jan 31 deadline, Nigerian banks cried out over the shortage of new naira notes despite the Central Bank of Nigeria (CBN) reporting that it has a surplus of the new notes in its vaults.
The CBN, during its many sensitisation outings across the nation, stated that it is pleading with commercial banks to come for the new notes ahead of its January 31, 2023 deadline.
The apex bank vowed to penalise banks that continue to issue old naira notes or dispense the same through their ATMs.
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