The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine Deposit Money Banks for failing to ensure the availability of cash through Automated Teller Machines (ATMs) during the recent festive season.
Each of the affected banks was fined N150 million following spot checks that revealed violations of the apex bank’s cash distribution guidelines. The banks penalized 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.
In a statement issued on Tuesday, the Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, reiterated the regulator’s zero-tolerance approach to cash distribution failures.
“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 N150 million 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 statement read.
Mrs. Sidi Ali also warned that further sanctions would be imposed on any institution that continues to violate the CBN’s cash circulation policies.
The regulator has pledged to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. Additionally, the CBN is collaborating with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2 million for POS operators.
