- The CBN reiterated its commitment to ensuring smooth cash flow, particularly during periods of high demand.
The Central Bank of Nigeria (CBN) has slammed N1.35 billion fine on nine commercial banks for not providing sufficient Naira notes through Automated Teller Machines (ATMs) during the yuletide season.
The banks were fined N150 million each for non-compliance with the CBN’s cash distribution guidelines following spot checks conducted at their branches.
The apex bank disclosed the development in a statement, adding that the fines would be debited directly from the affected banks’ accounts.
The CBN reiterated its commitment to ensuring smooth cash flow, particularly during periods of high demand.
The Acting Director, Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, stated: “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 also disclosed that investigations had begun into cash hoarding and rationing by bank branches and Point-of-Sale (POS) operators.
Ali said the CBN was collaborating with security agencies to address illegal cash sales and enforce the POS operators’ daily cumulative withdrawal limit of ₦1.2 million.
Governor Olayemi Cardoso, at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned financial institutions to strictly adhere to cash distribution policies or face severe penalties.
He reiterated the CBN’s commitment to maintaining trust, stability, and efficient cash circulation within the financial system.
The fined banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, and Globus Bank. Others are Providus Bank, Zenith Bank, United Bank for Africa (UBA), and Sterling Bank