Ola Williams, Abuja-
The Central Bank of Nigeria has fined nine Deposit Money Banks N150 million each for failing to dispense cash through Automated Teller Machines during the just-ended festive season.
These 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. The fines totaled N1.35 billion and would be debited from the accounts of the banks with the apex bank.
The CBN, in a no-nonsense display of zero tolerance for any disruption to cash flow, has sanctioned these banks for violating its directive on cash distribution, according to a statement from the acting director of corporate communications at the apex bank, Mrs. Hakama Sidi Ali, on Tuesday.
The fines followed surprise checks on the banks’ branches that showed breaches in the cash availability policy, particularly during a period of heightened public demand for cash.
CBN Reiterates Zero Tolerance for Cash Flow Issues
Mrs. Sidi Ali said the regulator was committed to ensuring that financial institutions inspire public confidence by availing cash to them.
“Smooth cash flow is paramount as it would retain the confidence of the public and bring about economic stability,” she said. “The CBN would, therefore, not hesitate to impose further sanctions on any institution found flouting its guidelines on cash circulation. The central bank has also in the past warned financial institutions to strictly adhere to cash distribution policies, particularly during high-demand periods such as the festive season.”
Improved Monitoring and Collaboration with Security Agencies
Apart from the fines, the CBN promised to increase the tempo in monitoring cash distribution activities: to closely monitor bank branches and Point-of-Sale operators with a view to ensuring that hoarding and illegal sales of cash do not take place.
“The Central Bank is collaborating with the security agencies to put an end to the sales of naira notes illegally and the implementation of the N1.2 million daily withdrawal limit for operators of the Point of Sale,” Mrs. Sidi Ali said.
The statement further revealed that investigations and spot checks were ongoing, with the CBN promising to hold financial institutions accountable for non-compliance. Cash hoarding and rationing will continue to be under investigations and monitoring by the CBN, Mrs. Sidi Ali concluded, warning that further sanctions may be imposed on violators.
This enforcement action shows how determined the CBN is towards ensuring that financial stability in cash availability should not be disrupted nationwide.
