CBN Sanctions Nine Banks with ₦1.35bn Fine Over ATM Cash Shortages During Yuletide

The Central Bank of Nigeria (CBN) has imposed fines amounting to ₦1.35 billion on nine Deposit Money Banks (DMBs) for failing to ensure the availability of cash through Automated Teller Machines (ATMs) during the festive season.

Each of the affected banks was penalised ₦150 million after spot checks revealed non-compliance with the apex bank’s cash distribution guidelines.

The sanctioned banks are 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 issued on Tuesday, the Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi, reiterated the regulator’s commitment to maintaining seamless cash circulation, particularly during high-demand periods such as the yuletide.

According to her; “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.

“Each bank was fined ₦150 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.”

Mrs Sidi emphasised that the CBN would not hesitate to impose further sanctions on banks that breach its cash distribution policies, underscoring the apex bank’s commitment to tackling cash flow disruptions.

The CBN has intensified efforts to monitor cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. Additionally, the bank is collaborating with security agencies to curb illegal cash sales and enforce the daily withdrawal limit of ₦1.2 million for POS operators.

Last September, the CBN announced plans to penalise banks that fail to ensure ATM cash availability, a measure aimed at improving cash circulation. In November, it introduced a system for customers to report cash withdrawal issues, starting December 1, 2024, via state-specific hotlines and email addresses.