New Naira: CBN Launches Cash Swap Program For Rural Areas

The Central Bank of Nigeria (CBN) announced a cash swap program in collaboration with Super Agents & Deposit Money Banks (DMBs) with about ten days left before the old naira notes expire, allowing those in rural areas or with limited access to formal financial services to exchange their old notes for the new ones.

On Monday, January 23, 2022, the initiative becomes operative.

In a circular sent to DMBs, Mobile Money Operators, and Super Agents, Mr. Haruna Mustafa, Director of Banking Supervision for the CBN, divulged this information.

To ensure that distribution is fair, transparent, and evenly distributed throughout the nation, he said the move will work in tandem with ongoing, nationwide awareness- and sensitization-raising campaigns, mandated speedy collection of the new notes at CBN branches by Deposit Money Banks (DMBs), and automated teller machine (ATM) issuance.

The old N1,000, N500, and N200 notes can be exchanged for the newly redesigned notes and/or the current lower denominations (N100, N50, and N20, etc.), which are still valid forms of payment, under the cash swap arrangement.

“The agent shall exchange a maximum of N10,000 per person. Amounts above N10,000 may be treated as cash-in deposits 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.

“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 is able to exchange or deposit their cash seamlessly without taking unnecessary risks or incurring undue costs.

“Agents shall sensitise customers on opening wallets/ bank accounts and the various channels for conducting electronic transactions.

“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 cashout fees for the cash swap transactions but prohibited from charging any further commissions to customers for this service”, the circular noted.

Agents are expected to provide their designated banks with weekly returns regarding cash swap activities.