The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure the availability of cash in Automated Teller Machines (ATMs) during the 2024 festive period. This action follows spot checks by the apex bank, which uncovered significant non-compliance with its cash distribution guidelines.
The penalized banks—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 received fines of N150 million. The CBN confirmed that the fines will be debited directly from the banks’ accounts with the regulator.
In a statement released on Tuesday, the acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi, highlighted the central bank’s firm stance on ensuring smooth cash flow, particularly during periods of high demand.
The statement read, “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines, during the yuletide season.
“Each bank was fined N150m 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.”
To prevent future issues, the apex bank has vowed to strengthen its monitoring efforts. This includes tracking cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. In collaboration with security agencies, the CBN is also tackling illegal cash sales and ensuring adherence to the N1.2 million daily withdrawal limit for POS operators.
Previously, the CBN announced plans to penalize banks failing to dispense cash through ATMs, starting in late 2024. Customers were urged to report ATM and branch cash shortages to designated channels introduced by the CBN.
