The Central Bank of Nigeria (CBN) has wielded the big stick by imposing a total fine of N1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure sufficient availability of Naira notes through Automated Teller Machines (ATMs) during the 2024 festive season.
This was disclosed in a statement issued by the spokesperson of the apex bank, Mrs. Hakama Sidi on Tuesday night.
She said the fines were levied following spot assessments at the branches of the defaulting banks, which revealed non-compliance with the CBN’s cash distribution guidelines.
Each of the banks was fined N150 million for their lapses in meeting cash availability requirements.
The CBN stressed its commitment to ensuring seamless cash flow, especially during peak demand periods such as the festive season.
To enforce accountability, the apex bank confirmed that the fines would be directly debited from the accounts of the non-compliant banks.
Ali in the statement said, “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.