Nine Deposit Money Banks (DMBs) have been fined a total of N1.35 billion by the Central Bank of Nigeria (CBN) for their failure to guarantee sufficient Naira note availability through Automated Teller Machines (ATMs) during the Yuletide season.
Following spot checks at their branches, the banks were fined N150 million for failing to comply with the CBN’s cash distribution standards.
The CBN affirmed the enforcement action in a statement, emphasizing the apex bank’s dedication to ensuring smooth cash flow, especially during times of increased demand. The apex bank disclosed that the impacted banks’ accounts will be immediately debited for the fines.
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“Maintaining smooth cash flow is crucial to preserving public trust and economic stability,” said Mrs. Hakama Sidi Ali, the CBN’s Acting Director, Corporate Communications. Any institution found to be in violation of the CBN’s currency circulation standards will face additional fines without hesitation.
The CBN also revealed that it is still looking into bank branches and Point-of-Sale (POS) operators’ rationing and hoarding of cash.
Ali stated that in order to combat illicit cash sales and enforce the POS operators’ daily cumulative withdrawal cap of ₦1.2 million, the CBN was working with security agencies.
At the Chartered Institute of Bankers of Nigeria (CIBN) Annual Bankers’ Dinner in November 2024, Governor Olayemi Cardoso issued a dire warning to financial institutions: carefully follow cash distribution laws or risk harsh fines.
He reaffirmed the CBN’s dedication to preserving stability, confidence, and effective cash flow in the financial system.
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