The Central Bank of Nigeria (CBN) has imposed sanctions totaling N1.35 billion on nine Deposit Money Banks for failing to provide cash through Automated Teller Machines (ATMs) during the festive season. Each of the banks was fined N150 million following spot checks that uncovered violations of the CBN’s cash distribution guidelines.
The sanctioned 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 have been debited directly from the banks’ accounts with the CBN.
CBN’s Zero-Tolerance Policy on Cash Availability
In a statement issued on Tuesday, Mrs. Hakama Sidi, the Acting Director of Corporate Communications at the CBN, emphasized the regulator’s unwavering commitment to ensuring seamless cash availability for Nigerians, particularly during high-demand periods like the Yuletide season.
“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 ATMs during the Yuletide season,” the statement read.
The enforcement follows repeated warnings from the CBN to financial institutions, urging them to adhere to cash distribution policies. Mrs. Sidi highlighted that the fines are part of a broader strategy to hold banks accountable and prevent future disruptions in cash circulation.
Escalating Measures to Ensure Compliance
The apex bank has pledged to enhance its monitoring efforts to address cash hoarding, rationing, and other practices that contribute to cash scarcity. The regulator is collaborating with security agencies to clamp down on illegal cash sales and ensure compliance with daily withdrawal limits.
To address customer complaints, the CBN has set up designated state-specific phone numbers and email addresses for reporting ATM and branch withdrawal issues. This initiative, launched on December 1, 2024, is designed to facilitate real-time intervention and accountability.
CBN’s Persistent Efforts to Safeguard Customer Access to Cash
The enforcement action underscores the CBN’s zero-tolerance approach to cash flow disruptions. Last September, the CBN announced plans to penalize banks that fail to dispense cash via ATMs. By November, the bank issued warnings to financial institutions, emphasizing the need to ensure uninterrupted cash access during the holiday season.
The latest fines send a strong message to banks about prioritizing customer needs and adhering to regulatory guidelines. The CBN has reaffirmed its dedication to preventing cash shortages, ensuring equitable cash distribution, and safeguarding the financial system’s integrity.
This report is brought to you by Hobnob News.
