Naira scarcity: Commercial banks colluding with PoS operators – CBN alleges
Central Bank of Nigeria (CBN) has alleged a possible collusion between commercial banks and Point-of-Sale (PoS) operators over the lingering cash scarcity in the country, adding that it is already investigating it.
This was contained in a statement titled; ‘CBN cautions banks, PoS operators over availability of the naira …Provides digital feedback box to address complaints,’ describing the situation as ‘capable of undermining the smooth running of the economy.’
The statement said, “The attention of the Central Bank of Nigeria has been drawn to alleged cases of collusion between some Deposit Money Banks and Point-of-Sale 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.
“Meanwhile, members of the public are encouraged to use alternative payment channels as well as report any case of unauthorised activities, such as capping and hoarding, by banks or PoS agents to the CBN branch in their locations,” the regulatory bank disclosed.
It would be recalled that the CBN, penultimate week, denied reports of shortage of the banknotes in circulation, even as it blamed ‘large volume withdrawals of cash from various CBN branches by deposit money banks (DMBs), in addition to panic withdrawals by bank customers as partly responsible for the seeming scarcity.
Responding to the claims, the CBN in a statement, issued by its Corporate Communications Department, refuted the reports, insisting that ‘there is no shortage of Naira notes, as there is adequate supply of the currency in the economy.’
According to the regulatory bank, the seeming currency scarcity was occasioned by large volume withdrawals of cash from various CBN branches by deposit money banks (DMBs), adding further that panic withdrawals by bank customers was also partly responsible for the seeming scarcity.
“The attention of the CBN has been drawn to reports of alleged scarcity of cash at banks, ATMs, PoS and BDCs in some major cities across the country.
“Our findings reveal that the seeming cash scarcity in some locations is due largely to high volume withdrawals from the CBN branches by DMBs and panic withdrawals by customers from the ATMs.
“While we note the concerns of Nigerians on the availability of cash for financial transactions, we wish to assure the public that there is sufficient stock of currency notes for economic activities in the country.
“The branches of the CBN across the country are also working to ensure the seamless circulation of cash in their respective states of operation,” it said.
The bank advised members of the public to guard against panic withdrawals as there was sufficient stock to facilitate economic activities.
It also advised Nigerians to embrace alternative modes of payment, which would reduce pressure on using physical cash.
