By Barnabas Esiet.
The Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on several Deposit Money Banks (DMBs) for failing to dispense cash via Automated Teller Machines (ATMs) during the yuletide season.
This move is seen as a clear message of zero tolerance for cash flow disruptions, and a demonstration of the CBN’s commitment to ensuring seamless cash circulation across the financial system.
The affected banks include First Bank Plc, Fidelity 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.
The fine was imposed in line with the CBN’s cash distribution guidelines, following spot checks on the banks’ branches.
According to a statement signed by the Acting Director of Corporate Communications, Hakama Sidi Ali, the CBN had issued repeated warnings to financial institutions to guarantee seamless cash availability, particularly during periods of high demand such as the yuletide season. However, the banks failed to comply, leading to the imposition of the fine.
“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.
“The CBN’s investigations and monitoring will continue to scrutinize 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. ” The apex bank stated.
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.
“We will continue to work with all stakeholders to ensure that our financial system remains resilient and supportive of the nation’s economic growth and development.” Cardoso said.
The statement urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.
The statement also encouraged members of the public to report any cases of cash hoarding or rationing to the CBN or other relevant authorities.
The fine imposed on the banks is seen as a significant step towards ensuring that financial institutions comply with the CBN’s guidelines and maintain seamless cash circulation. It is also expected to serve as a deterrent to other banks that may be tempted to violate the guidelines.
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