The participating MFBs must be willing to accept a mixture of new and other banknotes, and that the MFBs shall give 20 per cent of any withdrawal in lower denomination notes subject to a maximum of N50,000.
The Central Bank of Nigeria says it has released guidelines for the disbursement of lower denominations of the naira through microfinance banks across the country.
The bank’s Director, Corporate Communications Department, Mr Isaac Okorafor, made this known in a statement in Abuja on Thursday.
Okorafor said this development was contained in a circular issued by the Director, Currency Operations Department of the bank, Mrs Patricia Eleje, in Abuja on Thursday.
He explained that the circular indicated that all microfinance banks must have a Composite Risk Rating of above average in the most recent Risk Based Supervision target examination before they were considered for the scheme.
He explained that the measure was to ensure that only MFBs with good corporate governance practices took part.
The statement read, “Meanwhile, the participating MFBs must be willing to accept a mixture of new and other banknotes, and that the MFBs shall give 20 per cent of any withdrawal in lower denomination notes subject to a maximum of N50,000.
“Where beneficiaries withdraw more than once in a day, the circular said that disbursement will only apply to one transaction per day.
“Similarly, the MFBs are allowed to exchange notes subject to a maximum of N50,000 for customers with bank accounts and N10,000 for customers without bank accounts.
“In that situation, the banks must not exchange for same beneficiaries more than once a week.
“It also instructed the banks to put in place effective control measures that will ensure that banknotes disbursed to customers with or without accounts are not sold.”