The Central Bank of Nigeria has sanctioned nine Deposit Money Banks with fines totalling N1.35bn for failing to ensure cash availability via the Automated Teller Machines during the Christmas and New Year festive season.
According to the statement by the CBN, each of the banks is fined N150 million, 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 statement added that the fines will be directly debited from the banks’ accounts with the CBN.
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, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.”
The statement noted that the 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 monitoring of cash hoarding and rationing at bank branches and Point-of-Sale terminals.
GIK/APA