CBN Cracks Down on Banks, Imposes 1.35bn in Fines for ATM Cash Shortages

• CBN had previously issued warnings to banks to comply with cash distribution guidelines and emphasized its efforts to monitor cash hoarding and rationing at bank branches and Point-of-Sale terminals.
• The apex bank has also been working closely with security agencies to address the illegal sale of cash and enforce the daily withdrawal limit of N1.2m for POS operators.
• The affected banks include 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.

The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35bn on nine Deposit Money Banks for their failure to ensure cash availability through Automated Teller Machines (ATMs) during the festive season.

Eko Hot Blog gathered that each bank was fined N150m after spot checks revealed non-compliance with the CBN’s cash distribution guidelines.

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The affected banks include 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 press statement released on Tuesday, Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, emphasized the regulator’s commitment to ensuring seamless cash availability.

The statement read, “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 N150m 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.

“The affected banks include 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.”

The Central Bank of Nigeria (CBN) has reaffirmed its commitment to enforcing cash circulation guidelines and warned that further sanctions will be imposed on any institution found violating these policies.

Prior to this recent action, the CBN had issued warnings to banks to comply with cash distribution guidelines and emphasized its efforts to monitor cash hoarding and rationing at bank branches and Point-of-Sale terminals.

The apex bank has also been working closely with security agencies to address the illegal sale of cash and enforce the daily withdrawal limit of N1.2m for POS operators.

In September 2024, the CBN announced its intention to penalize banks that fail to dispense cash via ATMs, aiming to ensure adequate cash circulation.

This commitment was further emphasized in November when the bank urged customers to report ATM and branch cash withdrawal issues starting December 1, 2024, using designated state-specific contact information.

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The fines underline CBN’s determination to prioritise customer needs and ensure uninterrupted access to cash.

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