The Central Bank of Nigeria has sanctioned nine Deposit Money Banks with fines totaling N1.35bn for failing to ensure cash availability via Automated Teller Machines during the festive season.
Each bank was fined N150m following spot checks that revealed non-compliance with the apex bank’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 directly debited from the banks’ accounts with the CBN.
In a press statement released on Tuesday, the acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi, emphasized the regulator’s commitment to ensuring seamless 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, following spot checks on their branches, in line with the CBN’s cash distribution guidelines. 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 noted that CBN will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines.
The enforcement action highlights the CBN’s zero-tolerance approach towards cash flow disruptions, especially during high-demand periods. The apex bank had previously warned banks to comply with cash distribution policies.
The CBN has pledged to intensify cash hoarding and rationing monitoring at bank branches and Point-of-Sale terminals.
The regulator is collaborating with security agencies to address illegal cash sales and ensure compliance with POS operators’ daily withdrawal limit of N1.2m.
Last September, the CBN announced plans to penalize banks that fail to dispense cash via ATMs as part of its efforts to ensure adequate cash circulation.
In November, the bank urged customers to report ATM and branch cash withdrawal issues starting December 1, 2024, through designated state-specific phone numbers and email addresses.
The fines underline CBN’s determination to prioritize customer needs and ensure uninterrupted access to cash.