The Central Bank of Nigeria(CBN) has sanctioned nine Deposit Money Banks with N1.35bn fine for not dispensing cash through their Automated Teller Machines during the yuletide period.
Each of the banks was fined N150m, following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.
The affected banks are: Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.
According to the report, the fines will be debited from the banks’ accounts with the CBN.
In a press statement released on Tuesday, the acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi, emphasised the regulator’s commitment to ensuring seamless cash availability.
The statement read, “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines, during the yuletide season.
“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
“The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.”
Sidi-Ali noted that CBN will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines.
The enforcement action highlights the CBN’s zero-tolerance approach towards cash flow disruptions, especially during high-demand periods. The apex bank had previously warned banks to comply with cash distribution policies.
The CBN has pledged to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale terminals.
The regulator is collaborating with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2m for POS operators.
Last September, the CBN announced plans to penalise banks failing to dispense cash via ATMs as part of efforts to ensure adequate cash circulation.
In November, the bank urged customers to report ATM and branch cash withdrawal issues starting December 1, 2024, through designated state-specific phone numbers and email addresses.
The fines underline CBN’s determination to prioritise customer needs and ensure uninterrupted access to cash.
Source The Punch