The Central Bank of Nigeria (CBN) has imposed fines of N150 million each on nine Deposit Money Banks (DMBs) for failing to dispense cash via Automated Teller Machines (ATMs) during the festive season.
This enforcement action follows spot checks on branches, revealing non-compliance with CBN’s cash distribution guidelines.
The sanctioned 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. The fines, totalling N1.35 billion, will be debited from the banks’ accounts with the apex bank.
This is according to a press statement on Tuesday by CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.
The statement read “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria (CBN) has sanctioned Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs), 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 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.”
CBN warns against cash disruptions
Sidi Ali confirmed the sanctions, stressing the importance of seamless cash availability.
“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.
“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she stated.
The CBN’s actions highlight its zero-tolerance stance on cash flow disruptions, particularly during high-demand periods. The regulator had previously warned banks about adhering to cash distribution policies.
Enhanced monitoring and enforcement
The CBN has announced intensified monitoring of cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. It is collaborating with security agencies to curb illegal cash sales and enforce the N1.2 million daily withdrawal limit for POS operators.
Mrs. Sidi Ali stated that ongoing investigations and spot checks aim to ensure compliance, warning of further sanctions for violations.
The statement read, “The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.”
What you should know
- The sanctions underline the importance of regulatory compliance and prioritising customer needs. It is believed the measures will enhance accountability and improve cash distribution efficiency, ensuring Nigerians’ uninterrupted access to cash during critical periods.
- In September last year, the CBN announced that it would sanction banks failing to dispense cash through their automated teller machine (ATMs), as part of efforts to ensure sufficient cash in circulation.
- By November, the apex bank urged bank customers to report ATM and branch cash withdrawal difficulties starting December 1, 2024, through designated state-specific phone numbers and email addresses.
