CBN Imposes Hefty Sanctions On Nine Banks For Severe ATM Cash Shortages Details

The Central Bank of Nigeria (CBN) has taken decisive action by sanctioning nine Deposit Money Banks (DMBs) for failing to ensure the adequate availability of Naira notes through automated teller machines (ATMs) during the festive season.

Each bank has been fined ₦150 million for non-compliance with CBN’s cash distribution guidelines, following thorough inspections of their branches.

The sanctioned 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.

This enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash flow, especially during periods of heightened demand.

Communication with the affected banks revealed that the fines will be deducted directly from their accounts with the apex bank.

Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, confirmed the sanctions, emphasizing, “Ensuring smooth cash circulation is crucial for maintaining public trust and financial system stability.”

The CBN continues to investigate and monitor cash management issues, including cash hoarding and rationing, across bank branches and POS operators. Collaboration with security agencies is underway to combat illegal cash transactions and ensure compliance with financial regulations.

Governor Olayemi Cardoso stressed the CBN’s unwavering commitment to maintaining a robust cash flow, urging banks to strictly adhere to cash distribution policies to avoid severe penalties.