CBN Fines Nine Banks ₦1.35 Billion for Failing to Dispense Cash via ATMs 

The Central Bank of Nigeria (CBN) has fined nine Deposit Money Banks (DMBs) a total of ₦1.35 billion for not ensuring the availability of cash through automated teller machines (ATMs) during the festive season. Each bank was fined ₦150 million for violating the CBN’s cash distribution guidelines after inspections revealed non-compliance. 

The affected 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 

    Sterling Bank Plc 

Direct Debit of Fines 

According to Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, the fines will be directly deducted from the banks’ accounts with the apex bank. She emphasized the importance of smooth cash circulation to maintain public trust and economic stability. 

The sanctions follow several warnings from the CBN to banks about ensuring uninterrupted cash availability, especially during high-demand periods like the yuletide season. 

Continuous Monitoring and Crackdown on Violations 

The CBN has pledged to continue monitoring banks for cash hoarding and rationing at branches and Point-of-Sale (POS) locations. It is collaborating with security agencies to address illegal cash sales and enforce POS operators’ daily withdrawal limit of ₦1.2 million. 

CBN Governor Olayemi Cardoso, during the 2024 Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), stressed the need for strict adherence to cash distribution policies. He warned banks that non-compliance would result in severe penalties. 

“Our priority is to maintain trust, ensure economic stability, and guarantee seamless cash flow across the financial system,” Cardoso said. 

Ensuring seamless cash flow is paramount to maintaining public trust and economic stability.” — Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, CBN. 

The CBN has reaffirmed its commitment to enforcing cash distribution guidelines and penalizing violations to ensure the availability of funds for Nigerians. The apex bank has urged all financial institutions to comply with its rules, warning that future breaches will attract swift and decisive actions.