The Central Bank of Nigeria (CBN) has imposed a total fine of N1.35 billion on nine commercial banks for failing to comply with cash availability guidelines during the festive season. Each bank was penalized N150 million after spot checks revealed non-compliance with cash distribution regulations.
The affected institutions 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.
Ensuring Cash Accessibility
To prevent cash shortages during high-demand periods, the CBN had earlier released cash distribution directives aimed at ensuring seamless access to naira notes, particularly via Automated Teller Machines (ATMs). According to a statement from the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, the sanctions underline the apex bank’s zero-tolerance approach to disruptions in cash flow.
“Despite repeated warnings, these banks failed to ensure adequate cash availability, necessitating enforcement actions to maintain consumer trust and compliance with our policies,” Sidi-Ali emphasized.
Monitoring and Enforcement
The CBN has intensified monitoring efforts to curb cash hoarding and illegal cash sales, particularly at bank branches and Point-of-Sale (POS) terminals. The apex bank is working with security agencies to ensure compliance with cash withdrawal limits and mitigate fraudulent practices.
Recent measures include:
- Restricting POS agents to a daily cumulative cash-out limit of N1.2 million and individual transactions capped at N100,000.
- Setting a maximum weekly cash withdrawal limit of N500,000 for customers.
Additionally, the CBN has mandated that banking terminals remain connected to the Payment Terminal Service Aggregator (PTSA) to ensure accurate transaction reporting. Violations of these directives will attract severe penalties, including monetary fines and administrative sanctions.
Customer Engagement and Policy Updates
In its effort to enhance customer experience and transparency, the CBN has launched initiatives such as state-specific helplines for reporting ATM and cash withdrawal issues. Furthermore, the bank introduced a revamped website offering easier access to financial information, regulatory updates, and monetary policy guidelines.
Looking Ahead
The penalties highlight the CBN’s commitment to creating a reliable financial environment and addressing challenges within the banking sector. With stricter enforcement of cash distribution guidelines, the apex bank aims to bolster public trust and ensure seamless financial transactions, especially during critical periods like the festive season.
