The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine deposit money banks for failing to ensure the availability of Naira notes through automated teller machines (ATMs) during the festive season.
Each bank has been fined N150 million for non-compliance with the CBN's cash distribution guidelines, following spot checks that revealed significant shortcomings in their operations.
The CBN's action underscores its commitment to maintaining a seamless cash flow, which is essential for public trust and economic stability. The regulator had previously issued multiple warnings to financial institutions about the importance of ensuring cash availability, particularly during high-demand periods like the holidays.
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.
In a statement confirming the fines, Mrs. Hakama Sidi Ali, the acting Director of Corporate Communications at the CBN, emphasized that these penalties serve as a clear message of zero tolerance for disruptions in cash flow. The fines will be directly debited from the banks' accounts with the CBN.
The CBN has also announced plans to intensify monitoring efforts to combat cash hoarding and rationing at both bank branches and Point-of-Sale (POS) terminals.
This includes collaboration with security agencies to address illegal cash sales and ensure compliance with daily withdrawal limits set for POS operators.
Additionally, the CBN has reiterated that old denominations of N1000, N500, and N200 remain legal tender despite misinformation suggesting otherwise.
