The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine commercial banks, including First Bank, Union Bank, and seven others, for failing to ensure cash availability via Automated Teller Machines (ATMs) during the festive season.
Each of the affected banks which includes: 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, was fined N150 million following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.
CBN made the announcement through a press statement released by the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali. According to her, the fines will be directly debited from the banks’ accounts with CBN.
“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.
“The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.”
CBN further emphasized its commitment to ensuring seamless cash availability and maintaining a zero-tolerance policy for cash flow disruptions.
Also, the regulator had warned banks to comply with cash distribution policies, and the recent fines demonstrate its resolve to enforce these guidelines.
In addition to the fines, the CBN has pledged to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale terminals. The regulator is also collaborating with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2 million for POS operators.
