Nine commercial banks operating in the country have been fined N150 million each by the Central Bank of Nigeria (CBN) over their failure to dispense cash to customers through their Automated Teller Machines (ATMs).
Recall that last year, the banking sector watchdog warned deposit money banks (DMBs) to load their ATMs with cash to ease the hardships Nigerians go through in getting cash.
It was alleged that members of staff of banks were selling cash to Point of Sale (POS) operators as it was getting difficult for customers to withdraw cash from banks.
To address this issue, the central bank directed lenders to ensure customers are able to withdraw their funds via their ATMs or risk being sanctioned.
In a statement on Tuesday, the Acting Director of the Corporate Communications Department of the CBN, Mrs Hakama Sidi Ali, said spot checks showed that the affected banks did not comply with the cash distribution guidelines, noting that the fines will be directly debited from the affected banks’ accounts.
She listed the defaulting lenders as Fidelity Bank, First Bank, Globus Bank, Keystone Bank, Providus Bank, Sterling Bank, Union Bank, UBA, and Zenith Bank.
“In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines, during the yuletide season.
“Each bank was fined N150 million 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.
“The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank, Union Bank Plc, Globus Bank, Providus Bank, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc,” the statement said, stressing that the apex bank will not hesitate to impose further sanctions on any institution violating its cash circulation guidelines.