The Central Bank of Nigeria (CBN) has sanctioned nine Deposit Money Banks (DMBs) with a cumulative fine of ₦1.35 billion for failing to dispense naira notes through Automated Teller Machines (ATMs) during the Yuletide period.
Each of the banks was fined ₦150 million for violating the CBN’s cash distribution guidelines. The penalties followed spot checks conducted at various branches of the affected banks, revealing their non-compliance.
The sanctioned 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.
Confirming the development, the acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, stated that the fines would be directly debited from the accounts of the defaulting banks with the apex bank.
“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she said.
Mrs. Ali emphasised that the CBN’s monitoring efforts would continue, with investigations aimed at exposing cash hoarding and rationing practices 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 the daily cumulative withdrawal limit of ₦1.2 million for POS operators,” she added.
The enforcement action came on the heels of repeated warnings from the CBN to financial institutions to ensure seamless cash availability, particularly during periods of high demand.
LEADERSHIP reports that CBN Governor, Olayemi Cardoso, had earlier cautioned banks to adhere strictly to cash distribution policies or face stringent penalties. Speaking at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, he reaffirmed the CBN’s commitment to ensuring efficient cash circulation across the financial system.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso stated.
Nafisat Abdulrahman
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