Nine Deposit Money Banks in Nigeria have been fined a total of N1.35bn by the Central Bank of Nigeria (CBN) for failing to ensure sufficient cash availability through Automated Teller Machines (ATMs) during the festive season.
Each bank was penalized N150m after spot checks revealed non-compliance with the apex bank’s cash distribution guidelines.
The banks affected by the sanctions 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 are to be debited directly from their accounts with the CBN.
In a statement released on Tuesday, the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, emphasized the CBN’s commitment to maintaining seamless cash flow across the country.
She noted, “This enforcement action sends a clear message of zero tolerance for disruptions in cash availability. Each of the nine banks was fined N150m for breaching the CBN’s cash distribution policies, following inspections of their operations.
“The affected banks have been warned previously, and the CBN will continue to take stringent measures to ensure financial institutions adhere to cash circulation guidelines, especially during periods of peak demand.”
To further address the issue, the CBN has intensified its monitoring efforts, targeting instances of cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. Collaboration with security agencies is also underway to combat illegal cash sales and enforce the daily withdrawal limit of N1.2m for POS operators.
Earlier in September, the CBN announced its intent to penalize banks failing to dispense cash through ATMs, and in November, it encouraged customers to report ATM and branch cash withdrawal issues starting December 1, 2024.
These fines highlight the regulator’s unwavering commitment to prioritizing customer access to cash and ensuring compliance with its distribution policies.
