The Central Bank of Nigeria (CBN) has imposed hefty fines on nine commercial banks, totaling N1.35 billion. Each bank has been fined N150 million after the CBN conducted spot checks and found that many ATMs were running low on cash during the busy holiday period.
The banks affected by this penalty include well-known names such as Fidelity Bank, First Bank, Keystone Bank, and Zenith Bank. The CBN had previously issued clear guidelines to these institutions, urging them to ensure that their ATMs were stocked with sufficient cash to meet customer demand during the yuletide season.
Mrs. Hakama Sidi-Ali, acting Director of Corporate Communications at the CBN, reiterated the bank’s commitment to maintaining a steady flow of cash. She stated, “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 festive season.”
The CBN’s actions come after a series of warnings to financial institutions about the importance of ensuring seamless cash availability, especially during high-demand times like the holidays. The fines will be directly deducted from the banks’ accounts at the CBN.
In addition to these penalties, the CBN is ramping up its efforts to monitor and address issues related to cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. The bank is collaborating with security agencies to combat illegal cash sales and ensure compliance with new withdrawal limits set for POS operators.
As part of its ongoing initiatives to promote a cashless economy, the CBN has also implemented daily cash withdrawal limits for customers and POS agents. Customers can now withdraw a maximum of N500,000 per week, while POS agents are limited to N1.2 million in total daily withdrawals.
This recent crackdown underscores the CBN’s determination to improve cash circulation in Nigeria and restore trust among customers who have faced disruptions in accessing their funds in recent months. With these measures in place, there is hope for a more reliable banking experience in future holiday seasons, ultimately benefiting both consumers and financial institutions alike
