CBN sanctions nine banks for failing to dispense cash via ATMs

In a clear demonstration of zero tolerance for cash flow disruptions, the Central Bank of Nigeria (CBN) has sanctioned nine Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes through automated teller machines (ATMs) during the yuletide season.

Each bank was fined ₦150 million for non-compliance, in accordance with the CBN’s cash distribution guidelines, following spot checks conducted on their branches.

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.

This enforcement action comes after repeated warnings from the CBN to financial institutions to ensure seamless cash availability, particularly during periods of high demand.

Communication with the sanctioned banks revealed that the fines would be debited directly from their accounts with the apex bank.

The Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, confirmed the development, stating, “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.

“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she added.

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The CBN’s investigations and monitoring will continue to address issues of cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.

Additionally, the Central Bank is collaborating with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of ₦1.2 million.

Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties.

He emphasized the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs.

“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso stated.

The CBN has urged all financial institutions to comply with its guidelines, warning that further violations will attract swift and decisive sanctions.