The Central Bank of Nigeria (CBN) on Tuesdsy said it had sanctioned nine commercial banks for failing to dispense cash through automated teller machines (ATMs), during the yuletide season.
The nine banks were fined N150 million each, making a total fine of N1.35 billion.
In a statement by Hakama Sidi-Ali, CBN’s Director, Corporate Communications Department, the bank maintained that the sanction was a clear message of zero tolerance for cash flow disruptions.
The affected banks are FirstBank Plc, United Bank for Africa (UBA), Fidelity Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, and Sterling Bank Plc.
Sidi-Ali said that 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 said that the enforcement action followed repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
“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.
“The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she said.
She 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.
