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CBN Fines Nine Banks N150m Each for ATM Cash Shortages During Festive Season

Published by admin on January 14th, 2025.

CBN Fines Nine Banks N150m Each for ATM Cash Shortages During Festive Season

The Central Bank of Nigeria (CBN) has levied penalties totaling N1.35 billion on nine Deposit Money Banks for failing to ensure the availability of cash via Automated Teller Machines (ATMs) during the recent festive season.

Each of the banks was fined N150 million after spot checks revealed they had not adhered to the CBN’s cash distribution rules.

The banks affected by the fines 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.

The penalties will be deducted directly from the banks’ accounts with the CBN.

In a statement released on Tuesday, Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, reiterated the bank’s commitment to ensuring consistent cash availability.

The statement read, “The Central Bank of Nigeria has taken action against Deposit Money Banks for failing to ensure the availability of Naira notes at ATMs during the holiday season. The sanctions underscore our zero-tolerance policy for disruptions in cash flow.”

She explained that each non-compliant bank was fined N150 million after spot checks were conducted at their branches. This action follows several previous warnings to financial institutions about ensuring seamless cash access, especially during peak demand periods.

The banks affected by the penalties are 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.

Sidi Ali further stated that the CBN would continue to enforce its cash circulation policies and would impose additional sanctions on institutions that fail to comply in the future.

The CBN had previously cautioned banks to strictly follow its cash distribution policies and emphasized the need to combat cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals.

Additionally, the CBN is collaborating with security agencies to prevent illegal cash sales and ensure POS operators adhere to the N1.2 million daily withdrawal limit.

Last September, the CBN announced plans to penalize banks that do not dispense cash through ATMs, as part of efforts to maintain adequate cash circulation. The bank also urged customers to report any ATM or branch cash withdrawal issues starting from December 1, 2024, using designated state-specific contact information.

These fines reinforce the CBN’s commitment to prioritizing customer satisfaction and ensuring uninterrupted access to cash.