The Central Bank of Nigeria has imposed a fine of N1.35bn on nine banks due to the shortage of cash available at Automated Teller Machines.
PERISCOPE NIGERIA reports that the nine Deposit Money Banks were fined for not maintaining sufficient cash availability in their ATMs during the holiday season.
Each of the banks received a fine of N150 million after inspections showed they were not adhering to the central bank’s cash distribution regulations.
The banks that have been impacted 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 imposed fines will be deducted directly from the banks’ accounts held with the Central Bank of Nigeria (CBN).
In a press release issued on Tuesday, Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, underscored the regulator’s dedication to guaranteeing a steady supply of cash.
“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.”
