The Central Bank of Nigeria has slammed Zenith Bank, Sterling Bank and others with a fine of N150 million each for hoarding cash at ATM, thus causing scarcity of fund in the nation.
The sanctions totalling N1.35bn the affected Money Deposit Banks was as a result of their failure to make money available at their Automated Teller Machines during the festive season.
The apex bank said, it conducted spot checks at the affected Bank and found them culpable as there was complete non-compliance with the directive of the Central Bank as it affects distribution guidelines.
The affected banks are 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 fines will be directly debited from the banks’ accounts with the CBN.
The development was contained in a press release by the Acting Director of Corporate Communications at the CBN, Mrs Hakama Sidi Ali, on Tuesday in Abuja, emphasizing 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.”
Sidi-Ali noted that CBN will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines.
The apex bank had previously warned banks to comply with cash distribution policies.
The CBN has pledged to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale terminals.
The regulator was collaborating with security agencies to address illegal cash sales and ensure compliance with the daily withdrawal limit of N1.2m for POS operators.
Last September, the CBN announced plans to penalise banks failing to dispense cash via ATMs as part of efforts to ensure adequate cash circulation.
In November, the bank urged customers to report ATM and branch cash withdrawal issues starting December 1, 2024, through designated state-specific phone numbers and email addresses.
