For failing to guarantee sufficient availability of Naira notes through Automated Teller Machines (ATMs) over the Yuletide season, nine Deposit Money Banks (DMBs) have been fined a total of N1.35 billion by the Central Bank of Nigeria (CBN).
After spot checks at the banks’ branches, the CBN fined the banks N150 million for not adhering to its cash distribution standards.
A CBN statement reaffirmed the enforcement action and emphasized the central bank’s dedication to ensuring smooth cash flow, especially in times of strong demand. The apex bank disclosed that the penalty would be taken straight out of the accounts of the impacted institutions.
Mrs. Hakama Sidi Ali, the CBN’s Acting Director, Corporate Communications, said: “Maintaining economic stability and public trust depends on smooth financial flow. If an institution is found to be in violation of the CBN’s cash circulation criteria, the CBN will not hesitate to apply additional sanctions.
Additionally, the CBN revealed that it is still looking into why bank branches and Point-of-Sale (POS) operators hoard cash and ration it.
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According to Ali, the CBN is working with security organizations to combat illicit cash sales and enforce the ₦1.2 million daily cumulative withdrawal cap for POS operators.
At the November 2024 Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), Governor Olayemi Cardoso issued a dire warning to financial institutions: scrupulously follow the cash distribution laws or risk harsh fines.
In the financial system, he reaffirmed the CBN’s dedication to preserving stability, confidence, and effective cash flow.
Specifics in a Moment…
