No Cash Saga: CBN Slams N1.35bn Fines On First Bank, Zenith Bank, Others
- Over ATMs’ malfunction during Yuletide season
For failing to dispense Naira notes to customers through their Automated Teller Machines (ATMs) during the Yuletide season, the Central Bank of Nigeria (CBN) has clamped down on nine Deposit Money Banks (DMBs) in the country.
Consequently, the erring DMBs have been slammed with fines totalling N1.35 billion for failing to ensure cash availability via the ATMs during the Christmas and New Year celebrations.
Each of the defaulting banks is to part with N150 million as fine following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.
The fines will be directly debited from the banks’ accounts with the CBN, according to a statement by the apex Bank’s Director, Corporate Communications Department, Hakama Sidi-Ali.
She said the enforcement action sends a clear message to banking sector stakeholders on zero tolerance for cash flow disruptions within the system, especially during high-demand periods, adding that the CBN had previously cautioned banks on the need to strictly comply with cash distribution policies.
Listed among the sanctioned DMBs are Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, and Union Bank Plc. Others include Globus Bank Plc, Providus Bank Plc, United Bank for Africa (UBA) Plc, Sterling Bank Plc, and Zenith Bank Plc.
The statement by Sidi-Ali said; “The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines”.
According to her, the CBN’s investigations and monitoring would continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
She further disclosed that the CBN is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.
This is as the statement charged all financial institutions to comply with existing guidelines, warning that further violations would attract swift and decisive sanctions.
Emphasising the regulator’s commitment to ensuring seamless cash availability within the banking system, the statement read in part; “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.
“Each bank was fined N150m for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
“The affected 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, and Sterling Bank Plc.”
The statement noted that the apex Bank will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines, even as it pledged to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale terminals.
Recalled that the CBN had in September 2024 announced plans to penalise banks failing to dispense cash via ATMs as part of efforts to ensure adequate cash circulation.
Similarly, the apex bank in November urged customers to report ATM and branch cash withdrawal issues starting December 1, 2024, through designated state-specific phone numbers and email addresses.
The directives warning DMBs to strictly adhere to cash distribution policies or face severe penalties came from the CBN Governor, Yemi Cardoso, during the 2024 Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria, (CIBN) in November.
While highlighting CBN’s resolve and commitment to maintaining a robust cash buffer to meet the need of Nigerians, Cardoso said; “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system”.