The Central Bank of Nigeria (CBN) has imposed a collective fine of N1.35 billion on nine banks for failing to ensure adequate cash availability at Automated Teller Machines (ATMs) during the festive season. Each bank was fined N150 million following spot checks that revealed non-compliance with the CBN’s cash distribution guidelines.
The affected 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 (UBA), and Sterling Bank Plc. The fines will be directly deducted from the banks’ accounts with the CBN.
In a statement issued on Tuesday, CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, reiterated the regulator’s zero-tolerance policy towards disruptions in cash flow. She emphasized the CBN’s commitment to ensuring that banks adhere to guidelines for seamless cash availability, especially during high-demand periods such as the yuletide season.
“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 festive season,” the statement read. “Each bank was fined N150 million for non-compliance following spot checks on their branches. This enforcement action follows repeated warnings from the CBN to financial institutions to guarantee cash availability.”
The CBN had previously issued warnings to banks about the importance of complying with its cash distribution policies. The apex bank also emphasized its ongoing efforts to monitor and curb cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals.
To address issues of illegal cash sales and ensure compliance with the daily N1.2 million withdrawal limit for POS operators, the CBN has been working closely with security agencies.
In line with its enforcement strategy, the CBN announced plans last year to penalize banks that fail to dispense cash through ATMs. Additionally, the bank encouraged customers to report ATM and branch cash withdrawal issues via state-specific phone numbers and email addresses starting December 1, 2024.
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