CBN Slams N1.35bln Fine on Nine Banks for Cash Scarcity

The Central Bank of Nigeria (CBN) has imposed a total fine of N1.35 billion on nine deposit money banks (DMBs) for failing to ensure cash availability via automated teller machines (ATMs) during the festive season.

The affected banks include Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa (UBA), and Sterling Bank.

According to Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN in a statement on Tuesday, each bank is fined N150 million following spot checks that revealed noncompliance with the apex bank’s cash distribution guidelines.

“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,” the CBN stated.

The fines will be directly debited from the banks’ accounts with the CBN.

The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.

The CBN has pledged to intensify monitoring of cash hoarding and rationing at bank branches and point-of-sale terminals.

The regulator has also warned that it will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines.

Furthermore, the CBN will collaborate with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2 million for POS operators.