Onome Amuge
The Central Bank of Nigeria (CBN) has levied fines totalling N1.35 billion on nine Deposit Money Banks (DMBs) including , Zenith Bank Plc, United Bank for Africa Plc (UBA), Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, and Sterling Bank Plc, for failing to provide sufficient cash in their Automated Teller Machines (ATMs) during the recent Christmas and New Year holiday period.
In a follow-up to the regulatory action, each of the nine banks was slapped with a fine of N150 million, bringing the total penalty to N1.35 billion. The fine was imposed after spot checks by the CBN revealed non-compliance with the apex bank’s guidelines for cash distribution through ATMs during the festive period.
Hakama Sidi-Ali, CBN’s acting director of corporate communications, in a statement obtained by Business a.m, emphasised the regulator’s commitment to ensuring seamless cash availability.
The statement disclosed that the fines would be directly debited from the banks’ accounts with the CBN.
“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.
“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
“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, and Sterling Bank Plc,” Sidi-Ali stated.
The CBN director of corporate communications stated further that the apex bank will not hesitate to impose additional sanctions on any financial institution found to be flouting its cash circulation guidelines.
In the lead-up to the Christmas and New Year holidays, the CBN had already issued a warning to banks, urging them to adhere to the prescribed cash distribution policies. The CBN further committed to increase its monitoring efforts to crack down on cash hoarding and rationing at bank branches and Point of Sale (PoS) terminals.
In its effort to ensure compliance, the apex bank also announced plans to collaborate with security agencies to address illegal cash sales and enforce the N1.2 million daily withdrawal limit for POS operators.
