Nine Deposit Money Banks (DMBs) have been fined N1.35 billion by the Central Bank of Nigeria (CBN) for neglecting to provide naira notes via automated teller machines (ATMs) during the Yuletide season.
Following spot checks on their branches, each bank was fined ₦150 million for non-compliance with the CBN’s cash distribution requirements.
The enforcement move comes after the CBN repeatedly cautioned banking institutions to ensure smooth cash availability, especially during times of high demand.
First Bank Plc, Fidelity 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 are among the impacted financial institutions.
The banks were informed that the penalty will be taken straight out of their apex bank accounts.
Mrs. Hakama Sidi Ali, the CBN’s acting director of corporate communications, verified the information.
“The CBN will not be reluctant to impose additional sanctions on any institution found to be in violation of its cash circulation guidelines,” she stated.
Cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators will continue to be closely examined by the top bank’s investigations and supervision, she said.
“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.”
In November 2024, Governor Olayemi Cardoso advised banks to rigorously follow cash distribution policies or risk harsh fines during his speech at the Chartered Institute of Bankers of Nigeria’s (CIBN) Annual Bankers’ Dinner.
He reaffirmed the CBN’s resolve to keep a healthy cash reserve in order to support the needs of Nigerians. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” added Cardoso.
The CBN warned that more infractions will result in immediate and severe penalties, and it asked all financial institutions to abide by its rules.
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