CBN Sanctions Nine Banks N1.35Bn for Hoarding Cash

Nine Deposit Money Banks (DMBs) are to pay a N1.35 billion fine for failing to adequately load their Automated Teller Machines (ATMs) during the Yuletide.

The Central Bank of Nigeria (CBN) which slammed the sanction, said each of the banks would pay N150 million as fine for non-compliance with the regulator’s cash distribution guidelines, following spot checks conducted at their branches.

The sanctioned banks are: 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.

A statement by the CBN said the fines had been enforced, assuring that the commitment to guaranteeing seamless cash flow, particularly during periods of high demand, would be sustained.

According to the apex bank, the fines would be debited directly from the affected banks’ accounts.

The statement by the CBN Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, reads: “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.”

The CBN also disclosed ongoing investigations into cash hoarding and rationing by bank branches and Point-of-Sale (PoS) operators.

Mrs. Ali said the CBN is collaborating with security agencies to address illegal cash sales and enforce the PoS operators’ daily cumulative withdrawal limit of N1.2 million.