CBN Slams N1.35Bn Fine On Banks Over Cash Guidelines Infractions

brtnews
2 Min Read

The Central Bank of Nigeria (CBN) imposed about N1.350 billion fine on nine deposit money banks (DMBs) for failing to ensure adequate cash availability in their Automated Teller Machines (ATMs), particularly during the Yuletide season.

A source confirmed that each of the banks was fined N150 million for breaching cash distribution guidelines following inspections conducted by the apex bank on their operations during the Christmas season.

According to the source, the sanctioned Deposit Money Banks (DMBs) include Fidelity Bank, First Bank, Keystone Bank, Providus Bank, Zenith Bank, United Bank for Africa (UBA), Union Bank, Globus Bank and Sterling Bank.

The CBN had consistently advised DMBs and other financial institutions to consistently ensure cash availability in their vaults in order to build public confidence in the financial system and ensure economic stability.

In a statement issued after sanctioning the nine banks warned that further sanctions would be imposed on any financial institution that violated the cash distribution and other guidelines issued by it.

It maintained that monitoring of cash distribution systems and Point-of-Sale (POS) operators remained  ongoing, with investigations targeting illegal cash sales and non-compliance with withdrawal limits at the banks.

In addition, the apex bank hinted of its collaboration with security agencies to enforce POS withdrawal limit, which is currently set at N1.2 million per day, to combat transaction abuses and ensure orderly cash management in the economy.

Investigations by our correspondent during the Christmas festive seasons in the Federal Capital Territory (FCT), Ondo and Kogi states showed that most bank customers opted for POS transactions despite the high charges by the operators as most of the DMBs could not meet their cash demands.

A customer in Kuje, a satellite town in the FCT, Sister Elizabeth, confirmed that she could not withdraw the cash needed by her family during the season “because the banks here are paying us just N10,000 cash through their ATMs. The highest one can withdraw is N20,000 in a day.”

Share This Article