Home Business CBN imposes N1.35 billion fine on nine banks for ATM cash shortages

CBN imposes N1.35 billion fine on nine banks for ATM cash shortages

CBN fines nine banks N1.35 billion for ATM cash shortages
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The CBN has imposed a total fine of N1.35 billion on nine banks, including UBA and Sterling Bank, for failing to ensure ATM cash availability.

 

The Central Bank of Nigeria (CBN) has fined nine Deposit Money Banks a total of N1.35 billion for failing to ensure sufficient cash availability through Automated Teller Machines (ATMs) during the recent festive season.

Also read: CBN to slow down interest rate hike soon – Cardoso

The banks, including United Bank for Africa (UBA) and Sterling Bank, were each fined N150 million after spot checks revealed non-compliance with the apex bank’s cash distribution guidelines.

Other affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, and Zenith Bank Plc.

These institutions were found to have failed to meet the CBN’s expectations for cash circulation, especially during a peak period when many customers rely heavily on ATMs for withdrawals.

The CBN has expressed its unwavering commitment to ensuring a smooth cash flow, particularly during busy periods, and has warned that further sanctions will be imposed on any bank found violating its cash distribution protocols.

The regulatory body has also pledged to intensify its monitoring efforts on cash hoarding and rationing, which has been an issue at both bank branches and Point-of-Sale (POS) terminals.

In a move to protect consumers, the CBN previously urged customers to report ATM and cash withdrawal issues at bank branches.

Additionally, the bank has collaborated with security agencies to crack down on illegal cash sales and ensure that POS operators comply with the daily withdrawal limit of N1.2 million, aimed at curbing fraud and promoting transparency in cash transactions.

The fines serve as a stern reminder to all financial institutions in the country that adherence to the CBN’s guidelines is not optional but a necessary measure to ensure seamless banking services and prevent unnecessary inconvenience to the public.

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