The Central Bank of Nigeria (CBN) has sanctioned nine deposit money banks (DMB) with fines totalling N1.35 billion for failing to ensure cash availability via automated teller machines (ATM) during the festive season.
The banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, and Globus Bank.
Others are Providus Bank, Zenith Bank, United Bank for Africa (UBA), and Sterling Bank.
In a statement on Tuesday, Hakama Sidi Ali, acting director of corporate communications at the CBN, said each bank was fined N150 million following spot checks that revealed noncompliance with the apex bank’s cash distribution guidelines.
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Sidi-Ali said 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,” the statement reads.
“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches.
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“The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.”
She added that the CBN will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines.
The CBN had pledged to intensify monitoring of cash hoarding and rationing at bank branches and point-of-sale terminals.
The regulator said it would collaborate with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2 million for POS operators.
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On November 29, Olayemi Cardoso, governor of CBN, urged bank customers to report any withdrawal challenges via designated phone numbers.
Prior to the directive, the financial regulator had asked banks to prioritise cash disbursement through ATMs or face penalties.
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