The Central Bank of Nigeria , CBN, has imposed fines on several Deposit Money Banks, DMBs, for failing to ensure the availability of Naira notes at automated teller machines, ATMs, during the yuletide season.

In a statement, CBN’s Director of Corporate Communications, Hakama Sidi-Ali, emphasized that this enforcement action sends a strong message of zero tolerance for disruptions in cash flow.

The banks affected by the sanctions 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.

Each of the non-compliant banks has been fined N150 million, in line with the CBN’s cash distribution guidelines, after spot checks revealed issues with ATM cash availability.

Sidi-Ali pointed out that these penalties were imposed following multiple warnings from the CBN to banks, urging them to ensure smooth cash availability, particularly during high-demand periods. The fines will be directly debited from the banks’ accounts with the CBN.

“Ensuring consistent cash flow is crucial for maintaining public trust and economic stability,” she stated, adding that the CBN would continue to monitor and enforce compliance with cash circulation guidelines.

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The CBN is also intensifying efforts to curb cash hoarding and rationing at bank branches and by Point-of-Sale, POS, operators.

Additionally, the bank is collaborating with security agencies to tackle illegal cash sales and ensure that POS operators adhere to the daily cumulative withdrawal limit of N1.2 million.

Sidi-Ali further warned that any financial institution found violating these guidelines would face swift and stringent penalties.

She reiterated CBN Governor Yemi Cardoso’s earlier statement at the Annual Bankers’ Dinner in November 2024, where he cautioned banks to strictly follow cash distribution policies or risk severe sanctions.

Cardoso emphasized the CBN’s commitment to maintaining a robust cash buffer to meet the needs of Nigerians and ensuring stability and trust within the financial system.

Crediblenewsng.com