The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35bn on nine Deposit Money Banks for failing to ensure cash availability via Automated Teller Machines (ATMs) during the festive season.
Each bank was penalized N150m following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines. The affected 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.
In a press statement issued on Tuesday, CBN’s acting Director of Corporate Communications, Mrs. Hakama Sidi, reiterated the regulator’s commitment to ensuring seamless cash availability, particularly during high-demand periods.
“The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand. Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines,” the statement read.
Zero-Tolerance Policy
Mrs. Sidi stressed that the CBN remains firm in its zero-tolerance approach to cash flow disruptions and warned that further sanctions will be imposed on institutions violating cash circulation policies.
The fines will be directly debited from the affected banks’ accounts with the CBN, underscoring the regulator’s resolve to prioritize customer needs and ensure uninterrupted access to cash.
Intensified Monitoring
The CBN has pledged to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. In collaboration with security agencies, the regulator aims to curb illegal cash sales and enforce compliance with the daily withdrawal limit of N1.2m for POS operators.
In September 2024, the CBN announced its intention to penalize banks failing to dispense cash through ATMs, with customers urged to report cash withdrawal issues from December 1, 2024, using designated state-specific phone numbers and emails.
Customer-Centric Focus
This enforcement action demonstrates the CBN’s determination to prioritize customer needs, ensure uninterrupted access to cash, and address systemic lapses in cash distribution.
