The Central Bank of Nigeria (CBN) has imposed a total of N1.35 billion in fines on nine Deposit Money Banks for failing to ensure cash availability via Automated Teller Machines (ATMs) during the festive season.
Each of the banks was fined N150 million after spot checks revealed non-compliance with the CBN’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 fines will be directly deducted from the banks’ accounts with the CBN.
In a statement released on Tuesday, Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, reiterated the bank’s commitment to ensuring smooth cash availability across the country.
The statement read, “The Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to ensure Naira notes were available at Automated Teller Machines during the yuletide season, sending a clear message of zero tolerance for cash flow disruptions.”
“Each bank has been fined N150 million for non-compliance with the CBN’s cash distribution guidelines following spot checks at their branches. This enforcement follows repeated warnings to financial institutions to guarantee the seamless availability of cash, particularly during periods of high demand.”
The CBN emphasized that it will take further action against any institution found violating its cash circulation guidelines. The apex bank had previously cautioned banks to adhere to cash distribution policies, particularly around the busy festive period.
The regulator also committed to intensifying monitoring efforts to curb cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. Additionally, it is collaborating with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2 million for POS operators.
In September, the CBN had announced plans to penalize banks that failed to dispense cash via ATMs, as part of its broader efforts to ensure adequate cash circulation across the country.
In November, the CBN urged customers to report any ATM or branch cash withdrawal issues from December 1, 2024, through designated state-specific contact numbers and email addresses.
The fines underscore the CBN’s determination to prioritize customer needs and ensure uninterrupted access to cash across Nigeria.
