CBN fines 9 banks N1.35b over cash availability failures

The Central Bank of Nigeria (CBN) has imposed fines totaling ₦1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure adequate Naira note availability through Automated Teller Machines (ATMs) during the 2024 yuletide season.

In a statement released, the apex bank disclosed that the penalties were based on spot checks conducted at the branches of the affected banks, which uncovered their non-compliance with the CBN’s cash distribution guidelines.

Each bank was fined ₦150 million for failing to meet the required cash availability standards during the festive season, a time of heightened financial demand.

The CBN reaffirmed its dedication to maintaining a seamless cash flow for Nigerians, especially during peak demand periods. It also confirmed that the fines would be directly debited from the accounts of the defaulting banks as part of its enforcement measures.

The Acting Director, Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, stated:

“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.”

The CBN also announced ongoing investigations into cash hoarding and rationing by bank branches and Point-of-Sale (POS) operators.

Ali said the CBN was collaborating with security agencies to address illegal cash sales and enforce the POS operators’ daily cumulative withdrawal limit of ₦1.2 million.

Governor Olayemi Cardoso, at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned financial institutions to strictly adhere to cash distribution policies or face severe penalties.

He reiterated the CBN’s commitment to maintaining trust, stability, and efficient cash circulation within the financial system.

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