The Central Bank of Nigeria (CBN) has taken decisive action against nine major banks for their failure to maintain adequate cash supplies at their Automated Teller Machines (ATMs) during the holiday season, imposing fines totaling N1.35 billion. Each bank was hit with a N150 million penalty after spot checks confirmed non-compliance with the CBN’s cash distribution mandates.
The banks involved in this regulatory crackdown are 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. The fines are to be directly debited from the banks’ accounts held with the CBN, signaling a strong stance against service disruptions.
In a statement from the CBN, Mrs. Hakama Sidi-Ali, the acting Director of Corporate Communications, underscored the bank’s commitment to ensuring cash is readily available to the public. “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 read. This action follows several warnings issued by the CBN for banks to ensure seamless cash availability, especially during peak demand periods like the festive season.
The CBN’s response doesn’t stop at fines. The regulator has vowed to heighten surveillance on cash hoarding and rationing practices not only in bank branches but also at Point-of-Sale (POS) terminals. This move aims to tackle the broader issues of cash circulation and availability. Furthermore, the CBN is partnering with security agencies to clamp down on illegal cash sales and enforce the daily withdrawal limit of N1.2 million for POS operators.
This enforcement action was anticipated since last September when the CBN announced its intention to penalize banks for ATM cash dispensing issues. By November, the bank had already set up a system for customers to report cash withdrawal problems at ATMs and bank branches, providing specific contact points for each state.
The fines serve not only as a penalty but also as a reminder of the CBN’s ongoing effort to prioritize customer service and maintain financial stability by ensuring that cash is accessible when most needed. This action reflects the CBN’s broader strategy to enforce compliance and uphold the integrity of the nation‘s monetary system during critical times.
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