YULETIDE: CBN IMPOSES N1.35BN FINE ON 9 BANKS OVER ATM CASH SCARCITY
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The Central Bank of Nigeria has imposed sanctions on nine Deposit Money Banks, fining them a total of N1.35bn for failing to ensure cash availability through Automated Teller Machines during the festive season.
Each of the banks was penalized N150m after spot checks revealed non-compliance with the CBN’s cash distribution guidelines.
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.
The fines will be deducted directly from the banks’ accounts with the CBN.
In a press release issued on Tuesday, the acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi, reiterated the regulator’s dedication to ensuring smooth 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 stated that the CBN will not hesitate to impose additional sanctions on any institution found violating its cash circulation regulations.
The action underlines the CBN’s strict zero-tolerance policy toward disruptions in cash flow, particularly during peak demand periods. The apex bank had earlier warned banks to adhere to cash distribution policies.
The CBN has committed to increasing its monitoring of cash hoarding and rationing at bank branches and point-of-sale terminals.
The regulator is working with security agencies to combat illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2m for POS operators.
Last September, the CBN announced its intention to penalize banks that fail to dispense cash through ATMs as part of efforts to maintain adequate cash circulation.
In November, the bank urged customers to report any ATM or branch cash withdrawal issues beginning December 1, 2024, using designated state-specific phone numbers and email addresses.
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