CBN fines nine banks N1.35bn for cash shortage at ATMs

• Published On: 15 January 2025 at 19:09

The Central Bank of Nigeria has fined nine deposit money banks N1.35 billion for failing to ensure cash availability at automated teller machines during the festive season.

The following banks are affected: Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank.

In a statement issued on Tuesday, Hakama Sidi Ali, acting director of corporate communications at the CBN, stated that each bank was fined N150 million after spot checks revealed noncompliance with the CBN's cash distribution guidelines.

Sidi Ali emphasised that the fines would be deducted directly from the banks' accounts with the CBN. "In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines during the yuletide season," according to a statement.

The CBN had previously issued repeated warnings to financial institutions, urging them to ensure consistent cash availability, especially during peak demand periods. Sidi Ali also stated that the CBN would not hesitate to impose additional sanctions on any institution that violated its cash circulation guidelines.

Furthermore, the CBN announced plans to step up monitoring of cash hoarding and rationing at bank branches and point-of-sale machines. The regulator also stated that it intends to work with security agencies to combat illegal cash sales and enforce compliance with the daily withdrawal limit of N1.2 million for POS operators.

Previously, on November 29, CBN Governor Olayemi Cardoso urged bank customers to report any withdrawal issues via designated phone numbers. The CBN had previously ordered banks to prioritise cash disbursement via ATMs or face penalties.