CBN Imposes N1.35 Billion Fine on Nine Banks for ATM Cash Shortages During Yuletide*

 *CBN Imposes N1.35 Billion Fine on Nine Banks for ATM Cash Shortages During Yuletide*

In a decisive move to ensure the availability of cash during the festive season, the Central Bank of Nigeria (CBN) has levied fines totaling N1.35 billion on nine Deposit Money Banks (DMBs) for failing to dispense naira notes through their automated teller machines (ATMs). The enforcement action, which saw each bank fined N150 million, was in response to the banks' non-compliance with the CBN's cash distribution guidelines, following spot checks conducted on their branches.

*Affected Banks*

The banks facing these sanctions 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

- Sterling Bank Plc

*CBN's Stance*

Hakama Sidi Ali, the acting director of corporate communications at the CBN, confirmed the development, emphasizing the importance of seamless cash flow for maintaining public trust and economic stability. "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," she stated.

*Ongoing Monitoring and Enforcement*

The CBN has pledged to continue its investigations and monitoring to prevent cash hoarding and rationing, not only at bank branches but also by Point-of-Sale (POS) operators. The Central Bank is collaborating with security agencies to crack down on illegal cash sales and operational violations, including enforcing a daily cumulative withdrawal limit of N1.2 million for POS operators.

*Governor's Warning*

Governor Olayemi Cardoso of the CBN, speaking at the annual bankers' dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, had previously warned banks to strictly adhere to cash distribution policies or face severe penalties. He underscored the CBN's commitment to maintaining a robust cash buffer to meet the needs of Nigerians, stating, "Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system."

*Call for Compliance*

The CBN has urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions. This move underscores the apex bank's determination to uphold the integrity of the financial system and ensure that cash is readily available to the public, especially during periods of high demand.