CBN
CBN wields big stick, fines 9 banks N1.35bn over scarcity of cash in ATMs
The Central Bank of Nigeria, CBN, has wielded the hammer, with N1.35 billion fines imposed on nine Deposit Money Banks for failure to ensure cash availability via automated teller machines, ATMs, during the festive season.
The CBN found the banks wanting during spot checks which showed non-compliance with the Central Bank’s cash distribution guidelines.
A statement by CBN acting Director of Corporate Communications, Mrs Hakama Sidi Ali, Tuesday, stated that, “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 total of N1.35 billion fine, will see each of the banks paying N150 million each, and will be debited directly from the banks’ accounts with CBN.