CBN Fines First Bank, Zenith, Seven Others N1.35b for Cash Rationing in ATMs

By Dansu Peter  The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine Deposit Money Banks for failing to ensure...

By Dansu Peter 

The Central Bank of Nigeria (CBN) has imposed fines totaling N1.35 billion on nine Deposit Money Banks for failing to ensure adequate cash availability in Automated Teller Machines (ATMs) during the festive season.  

Each bank was fined N150 million after spot checks revealed non-compliance with the apex bank’s cash distribution guidelines. 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.  

In a statement issued on Tuesday, the Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, reiterated the regulator’s commitment to ensuring seamless cash availability.  

“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,” the statement read.  

The CBN noted that the enforcement action follows repeated warnings to financial institutions to comply with its cash distribution policies, especially during periods of high demand. The fines have been directly debited from the banks’ accounts with the apex bank.  

Mrs. Sidi Ali emphasized that the CBN would not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines.  

The regulator also revealed plans to intensify monitoring of cash hoarding and rationing at bank branches and Point-of-Sale (POS) terminals. Collaboration with security agencies is underway to tackle illegal cash sales and ensure compliance with the N1.2 million daily withdrawal limit for POS operators.  

This latest enforcement action is part of a broader effort by the CBN to prioritize customer needs and ensure uninterrupted access to cash. Last September, the apex bank announced plans to penalize banks failing to dispense cash via ATMs. In November, it urged customers to report issues with ATM and branch cash withdrawals through designated state-specific phone numbers and email addresses, effective December 1, 2024.  

The sanctions underscore the CBN’s determination to uphold its mandate of ensuring financial system stability and meeting the cash demands of Nigerians.