CBN fines Zenith Bank & 8 other banks ₦1.350 billion over ATMs cash scarcity
The Central Bank of Nigeria (CBN) has imposed fines totaling ₦1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure the availability of Naira notes through Automated Teller Machines (ATMs) during the yuletide season.
Each of the affected banks was fined ₦150 million for non-compliance with the CBN’s cash distribution guidelines, following spot checks on their branches. This action underscores the apex bank’s zero-tolerance stance toward disruptions in cash flow, particularly during peak demand periods.
The sanctioned 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
Sterling Bank Plc
The Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, confirmed the development, stating:
“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 fines will be debited directly from the accounts of the banks held with the CBN. This enforcement action comes after repeated warnings from the apex bank to financial institutions to ensure adequate cash availability.
In addition to monitoring ATMs cash availability, the CBN has intensified efforts to address cash hoarding and rationing by bank branches and Point-of-Sale (POS) operators. Security agencies have been engaged to crack down on illegal cash sales and ensure adherence to the daily POS cumulative withdrawal limit of ₦1.2 million.
CBN Governor Olayemi Cardoso, during his address at the 2024 Annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN), reiterated the bank’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs. He warned financial institutions against non-compliance with cash distribution policies, emphasizing the importance of trust and stability in the financial system.
The CBN has urged all financial institutions to comply with its cash circulation guidelines, warning that further violations would attract swift and decisive sanctions.
