CBN Fines Nine Banks N1.35 Billion for Failing to Ensure ATM Cash Availability During Yuletide
The Central Bank of Nigeria (CBN) has imposed fines totalling N1.35 billion on nine commercial banks for failing to ensure the availability of Naira notes via automated teller machines (ATMs) during the recent yuletide season.
The action underscores the apex bank’s commitment to upholding seamless cash flow and addressing disruptions in currency circulation.
Each bank was fined N150 million for non-compliance with the CBN’s cash distribution guidelines, following spot checks conducted on their branches.
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 statement, the CBN Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, confirmed the fines, stating: “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 fines will be debited directly from the banks’ accounts with the CBN. Meanwhile, the apex bank continues to intensify its investigations and monitoring efforts to combat cash hoarding and rationing by banks and Point-of-Sale (POS) operators.
Additionally, the bank reiterated its enforcement of the POS operators’ daily cumulative withdrawal limit of N1.2 million.
Cardoso, during the November 2024 Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), warned banks of severe consequences for failing to adhere to cash distribution policies.
He affirmed the CBN’s focus on fostering public trust and maintaining economic stability.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso said.
In a related development, the CBN has debunked misinformation regarding the validity of old N1000, N500, and N200 denominations, urging Nigerians to disregard claims that they will cease to be legal tender by December 31, 2024.
According to a statement signed by Mrs Hakama Sidi Ali, the Supreme Court’s ruling of November 29, 2023, permits the indefinite concurrent circulation of all versions of the N1000, N500, and N200 denominations.
“For the avoidance of doubt, all versions of the naira, including the old and new designs of N1000, N500, and N200 denominations, as well as the commemorative and previous designs of the N100 denomination, remain valid and continue to be legal tender without any deadline,” the statement read.
The CBN called on Nigerians to continue accepting all Naira denominations for transactions and to handle them with care to ensure their longevity.
The CBN has also announced collaboration with security agencies to address illegal cash sales and other operational violations by financial institutions.
The apex bank emphasised its zero-tolerance approach towards disruptions in cash flow and promised swift sanctions for future violations.
The CBN’s measures aim to restore public confidence in the financial system and ensure equitable access to cash resources across Nigeria.
