By Tonia Okereke
The Central Bank of Nigeria (CBN) wielded the big stick on Deposit Money Banks (DMBs) for failing to provide Naira to customers via automated teller machines (ATMs), during the yuletide season.
The apex bank hit each bank with a ₦150 million for non-compliance,in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The penalty comes after several warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
The affected banks include, First Bank Plc, Keystone Bank Plc, Fidelity Banks, Union Bank Plc, Globus Bank PLC, Providus Bank Plc, Zenith Bank PLC, Sterling Bank and the United Bank for Africa PLC.
Communication with the 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, noting that “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 said.
The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 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 underscored 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 said.
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
Be the first to comment