9 Nigerian Banks Fined N1.35 Billion For Failing To Load ATMs During Yuletide

Nine Nigerian banks have been fined a total of N1.35 billion for not properly loading their ATMs during the holiday season.

The Central Bank of Nigeria (CBN) imposed the fine, stating that each bank will pay N150 million for not following the cash distribution rules after spot checks at their branches, Punch reported.

The banks that have been fined include: Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank.

Acting Director of Corporate Communications at the Central Bank of Nigeria (CBN) Hakama Sidi emphasized on Tuesday the bank's commitment to ensuring there is always enough cash available.

The statement explained that the CBN has taken action against Deposit Money Banks for not providing enough Naira notes through ATMs during the holiday season, sending a strong message of zero tolerance for any disruptions in cash flow.

"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," she said.

Sidi mentioned that the CBN will take further action against any bank that breaks its cash circulation rules. This action shows the CBN's strong stance against disruptions in cash flow, especially during busy times. The bank had earlier warned banks to follow its cash distribution rules.

The CBN has also promised to increase its efforts to monitor cash hoarding and rationing at bank branches and Point-of-Sale terminals. The CBN is working with security agencies to stop illegal cash sales and make sure Point-of-Sale (POS) operators follow the daily withdrawal limit of N1.2 million.

In November, the CBN asked customers to report any ATM or branch cash withdrawal problems starting from Dec. 1, using specific phone numbers and email addresses for each state. Last September, the CBN announced that it would fine banks that fail to provide cash through ATMs as part of efforts to make sure cash circulates properly.

In October last year, Governor of the Central Bank of Nigeria Olayemi Cardoso defended the bank's decision to increase the Monetary Policy Rate to 27.25%, highlighting that this move was necessary to control inflation and reduce excess money in the economy.