In a bold enforcement of its commitment to smooth cash flow, the Central Bank of Nigeria (CBN) has sanctioned several Deposit Money Banks (DMBs) for failing to make Naira notes available through Automated Teller Machines (ATMs) during the last festive season.
Newsonspot reports that leading banks, including Providus Bank, Sterling Bank were fined N150 million each for non-compliance with the apex bank’s cash distribution guidelines. This action followed spot checks on their branches during the yuletide period, revealing inadequate cash availability.
The CBN, in its statement, emphasized the importance of seamless cash circulation, especially during peak periods. Hakama Sidi Ali, the Acting Director of Corporate Communications, confirmed the fines and reiterated the bank’s zero tolerance for disruptions in cash flow.
“Ensuring uninterrupted cash availability is crucial to maintaining public trust and economic stability. Violations of our guidelines will continue to attract strict penalties,” she stated.
The sanctioned banks include Keystone Bank, Globus Bank, Providus Bank, Sterling Bank, and five other banks. According to the CBN, the fines will be deducted directly from the affected banks’ accounts with the regulator.
Beyond penalizing banks, the CBN is intensifying its efforts to monitor cash distribution at bank branches and Point-of-Sale (POS) outlets. The apex bank disclosed ongoing collaborations with security agencies to address illegal cash sales and enforce withdrawal limits for POS operators, capped at a cumulative daily limit of ₦1.2 million.
