“CBN Rakes in ₦2.35 Billion from Sanctioned Banks, Including UBA, Sterling Bank, and First Bank”

In a decisive move to uphold public trust and economic stability, the Central Bank of Nigeria (CBN) has penalized Deposit Money Banks (DMBs) for failing to provide cash through Automated Teller Machines (ATMs) during the yuletide season.

Each non-compliant bank was fined ₦150 million for breaching the CBN’s cash distribution guidelines. This enforcement action came after spot checks revealed lapses in cash availability during a period of heightened demand.

The sanctioned 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. The fines will be directly debited from the banks’ accounts with the apex bank.

Speaking on the development, Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, emphasized the importance of seamless cash flow to maintain public confidence. “Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. The CBN will not hesitate to impose further sanctions on any institution found violating its cash circulation guidelines,” she stated.

The sanctions align with the CBN’s commitment to curbing cash hoarding and operational inefficiencies. Investigations and monitoring efforts are being intensified to ensure compliance at bank branches and among Point-of-Sale (POS) operators. Additionally, the CBN is collaborating with security agencies to clamp down on illegal cash sales and enforce the POS daily cumulative withdrawal limit of ₦1.2 million.

CBN Governor Olayemi Cardoso, during his address at the 2024 Annual Bankers’ Dinner organized by the Chartered Institute of Bankers of Nigeria (CIBN), reiterated the bank’s zero-tolerance policy for breaches of cash distribution policies. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso asserted.

The CBN has warned financial institutions that future violations of its cash distribution guidelines will attract swift and severe penalties, underscoring its commitment to a stable and efficient financial system.