CBN Warns Banks Against Using Obsolete Circulars

The Central Bank of Nigeria (CBN) has issued a warning to all deposit money banks, licensed non-interest banks and other authorised dealers over persistent use of superseded circulars and guidelines within the banking sector, urging adherence to updated circulars.

The directive, issued by director of the financial markets department, Omolara Duke, emphasises the importance of compliance with the latest circulars and guidelines issued by the CBN.

Consequently, the CBN directive specifically targets deposit money banks, licensed non-interest banks, and other authorised dealers at the CBN discount window, instructing them to strictly adhere to the most recent circulars and guidelines.

Outlined in the directive are the superseding circulars and their respective replacements, ensuring clarity and compliance within the banking industry. Notable replacements include Circular FMD/DIR/PUB/CIR/001/006, dated October 7, 2022, which supersedes the previous circulars regarding access to the CBN discount window on auction days and the review of guidelines for accessing CBN lending windows and repo transactions.

Furthermore, Circular FMD/DIR/PUB/GUI/001/002, dated June 9, 2022, replaces previous guidelines for the operation of non-interest financial institutions’ instruments, indicating a comprehensive update in regulatory practices.

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The directive underscores the importance of stakeholders’ awareness and compliance with the updated circulars and guidelines. It serves as a reminder to all relevant parties to familiarise themselves with the latest protocols issued by the CBN to ensure smooth and efficient operations within the banking sector.

In light of this directive, deposit money banks, licensed non-interest banks, and authorised dealers at the CBN’s discount window are urged to promptly integrate the updated circulars and guidelines into their operations.

The CBN’s proactive approach in ensuring regulatory compliance and efficiency within the banking sector reflects its commitment to maintaining stability and transparency in Nigeria’s financial markets. Compliance with the latest directives is essential for fostering trust and confidence among stakeholders and promoting a robust banking environment.