The Central Bank of Nigeria CBN has sanctioned Deposit Money Banks DMBs for failing to make naira notes available through automated teller machines (ATMs), during the yuletide season
Each bank was fined N150 million 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.
Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.
Hakama Sidi Ali, acting director of corporate communications at the CBN, confirmed the development, noting that “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.
The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she added.
The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both 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.
Each bank was fined N150 million 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.
Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.
Hakama Sidi Ali, acting director of corporate communications at the CBN, confirmed the development, noting that “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.
The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she added.
The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both 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.
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