CBN Sanctions Zenith , First Bank , Union , 6 Others N150m Each For Failing To Dispense Cash Via ATMs
The Central Bank of Nigeria (CBN) has imposed a fine of N1.35 billion on nine Deposit Money Banks (DMBs) for failing to make naira notes available through automated teller machines (ATMs) during the Yuletide season.
Each bank was fined ₦150 million 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.
Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.
Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, who confirmed the development.
She said: ‘The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”
She said the apex bank’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
“The Central Bank is 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.”
Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties.
He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso had said.
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
