The Central Bank of Nigeria has imposed a cumulative fine of N1.35 billion on nine commercial banks for failing to ensure cash availability in the automated teller machines during the festive season.
Each of the banks was 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 acting spokesperson for the apex bank, Mrs Hakama Sidi-Ali said in a statement that the fines will be directly debited from the banks’ accounts with the CBN.
“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 N150 million 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 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,” she said.
The statement warned that the CBN will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines.
Sidi-Ali further said the enforcement action highlights the CBN’s zero-tolerance approach towards cash flow disruptions, especially during high-demand periods.
The CBN pledged to continue to monitor bank branches and point-of-sale operators in an effort to mitigate cash hoarding and rationing.
It also revealed that it has partnered with law enforcement agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2 million for POS operators.
