The Central Bank of Nigeria (CBN), has imposed fines totalling on N1.350 billion on nine Deposit Money Banks (DMBs) over failure to dispense cash through their Automated Teller Machines (ATMs) during the 2024 Christmas season.
The affected include banks Keystone Bank, Globus Bank, Sterling Bank, Providus Bank, Fidelity Bank, Union Bank, First Bank, United Bank for Africa and Zenith Bank.
Join our WhatsApp ChannelThis was made known in a statement signed by CBN’s Acting Director of Corporate Communications, Hakama Sidi Ali, released on Tuesday.
According to the statement, each of the affected banks is to pay the sum of N150 million as fine for noncompliance with CBN’s guidelines for cash distribution.
The action followed repeated warnings by the apex bank to financial institutions to ensure cash availability, during festive seasons that usually experience high demand.
According to CBN, the fines would be debited directly from the banks’ accounts with the apex bank.
While noting that ensuring seamless cash flow is imperative for maintaining public trust and economic stability,” the apex bank warned that it would not “hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”
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While trying to ensure adequate supply of cash during festive season, the CBN also put in place measures to check illegal cash sales among others.
The CBN assured that it will keep looking into and monitoring instances of cash hoarding and rationing by Point-of-Sale (POS) operators as well as at bank branches.
The CBN said it is collaborating with security agencies to combat illicit cash sales and operational infractions, such as imposing a N1.2 million daily cumulative withdrawal cap on point-of-sale operators.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
