CBN Fines 9 Banks for Cash Dispensing Failures
The Central Bank of Nigeria (CBN) has recently taken decisive action against nine Deposit Money Banks (DMBs) for their failure to dispense cash through automated teller machines (ATMs) during the Yuletide season. This move comes in the form of a hefty fine totaling N1.35 billion, with each bank being penalized ₦150 million for their non-compliance with the CBN’s cash distribution guidelines. The crackdown follows spot checks conducted by the central bank on various bank branches.
Banks Facing Sanctions
The affected institutions 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. These banks now find themselves in hot water as the fines will be directly debited from their accounts with the CBN. The CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, confirmed the imposition of sanctions and emphasized the central bank’s commitment to enforcing compliance with its guidelines.
Governor’s Warning and Focus on Cash Circulation
Governor Olayemi Cardoso, during his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, had already forewarned banks about the consequences of flouting cash distribution policies. He stressed the importance of maintaining a robust cash buffer to meet the needs of Nigerians and ensuring the smooth circulation of money throughout the financial system. The CBN remains resolute in its mission to uphold trust, stability, and efficiency in the country’s financial landscape.
CBN’s Stance on Compliance
The CBN has made it crystal clear that further violations of its guidelines will not be tolerated, and any institution found in breach will face swift and severe penalties. The central bank is actively monitoring cash hoarding, rationing, and other operational violations within the banking sector, collaborating with security agencies to crack down on illegal cash sales and enforce daily withdrawal limits for Point-of-Sale (POS) operators. It is imperative for all financial institutions to adhere to the CBN’s directives to avoid facing similar sanctions in the future.
