By Chidi Ugwu
The Central Bank of Nigeria (CBN) has fine nine deposit money banks N150 million each amounting to N1.35bn for failing to dispense cash via automated teller machines (ATMs) during the yuletide.
According to a statement from the CBN the enforcement action follows spot checks on branches, revealing non-compliance with CBN’s cash distribution guidelines.
The sanctioned 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, and Sterling Bank Plc. The fines, totalling N1.35 billion, will be debited from the banks’ accounts with the CBN.
The statement by Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali stated that “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria (CBN) has sanctioned Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season. “
“Each bank was fined N150 million 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 statement indicated.
