The Central Bank of Nigeria (CBN) has sanctioned some Deposit Money Banks (DMBs) for failing to make naira notes available through Automated Teller Machines (ATMs) during the yuletide season.
The CBN’s Director of Corporate Communications Department, Hakama Sidi-Ali, made this known in a statement on Tuesday, January 14, 2025.
The affected banks are Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, UBA, and Sterling Bank.
Sidi-Ali said each of the banks was fined N150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches.
She stated that the enforcement action followed repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
The CBN official noted: “Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.
“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.
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“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”
Sidi-Ali said the CBN’s investigations and monitoring would continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
She added that the CBN was 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.
She urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
The CBN Governor, Yemi Cardoso, had earlier warned banks to strictly adhere to cash distribution policies or face severe penalties.
Cardoso gave the warning in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024.
He underscored the apex bank’s commitment to maintaining a robust cash buffer to meet the need of Nigerians.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso had said.
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