THE Central Bank of Nigeria (CBN) has slammed N150 million fine on each of nine Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs), during the Christmas and New Year holidays.
A statement by the Director in the apex Bank’s Corporate Communications Department, Hakama Sidi-Ali, described the action as a sign of the CBN’s zero tolerance for cash flow disruptions.
The names of the affected banks were given as follows: 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
Sterling Bank Plc.
Hakama Sidi-Ali said that each of the banks was fined N150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches.
She said that the enforcement
action followed repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
“Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.
“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 said.
She said that the CBN’s investigations and monitoring would continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
She stressed that the CBN 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.
She urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
The CBN Governor, Yemi Cardoso, had earlier warned banks to strictly adhere to cash distribution policies or face severe penalties.
Cardoso gave the warning in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in Nov., 2024.
He stressed the apex bank’s commitment to maintaining a robust cash buffer to meet the need of Nigerians.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system.”