CBN fines nine banks ₦1.35 billion over ATM cash shortages

The Central Bank of Nigeria fines nine banks ₦1.35 billion for failing to ensure ATM cash availability during the festive season

[dropcap]T[/dropcap]he Central Bank of Nigeria (CBN) has imposed fines totalling ₦1.35 billion on nine Deposit Money Banks, including United Bank for Africa (UBA) and Sterling Bank, for failing to ensure sufficient cash availability via Automated Teller Machines (ATMs) during the festive season.

Also read: CBN launches new financial inclusion initiatives to empower women and marginalised groups

Each bank was fined ₦150 million following spot checks by the CBN that uncovered non-compliance with its cash distribution guidelines.

Other affected institutions include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, and Zenith Bank Plc.

The CBN reiterated its commitment to maintaining seamless cash circulation across Nigeria, warning that it would continue to sanction financial institutions that violate its guidelines.

To further address the issue, the apex bank pledged to increase monitoring of cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals.

In a proactive move last November, the CBN encouraged customers to report ATM and branch cash withdrawal difficulties.

Also read: CBN drives sustainable banking, IFRS adoption to attract foreign investment

It also collaborated with security agencies to clamp down on illegal cash sales and enforce the daily withdrawal limit of ₦1.2 million for POS operators.

The fines highlight the CBN’s resolve to uphold its cash distribution policies, especially during periods of high demand.

Quadri Olaitan