The Central Bank of Nigeria (CBN) has levied a penalty of ₦1.35 billion on nine Deposit Money Banks (DMBs) for their failure to ensure the availability of naira notes through automated teller machines (ATMs) during the holiday season.
Each institution has been fined ₦150 million for not adhering to the CBN’s cash distribution regulations following inspections conducted at their branches.
Henzodaily reports that this enforcement action comes after the CBN issued multiple warnings to financial institutions to ensure the uninterrupted availability of cash, especially during peak demand periods.
The banks subject to this penalty are listed below:
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
Sterling Bank Plc.
Daily Trust reported that the fines will be deducted directly from the banks’ accounts held with the central bank.
The Acting Director of Corporate Communications at the CBN, Hakama Sidi Ali, confirmed this development to journalists on Tuesday.
She said: ‘The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.”
She said the apex bank’s investigations and monitoring will continue scrutinising cash hoarding and rationing at bank branches and by Point-of-Sale (POS) operators.
“The Central Bank 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,” Ali added.
Earlier in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, CBN Governor Olayemi Cardoso warned banks to adhere to cash distribution policies or face severe penalties strictly.
He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso had said.
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.