- Apex Bank Cracks Down on Cash Hoarding by DMBs
- Tougher Sanctions Loom for Non-Compliance with Cash Circulation Policies
CBN Penalizes Banks Over Yuletide Cash Shortages
In a decisive move to ensure smooth cash circulation, the Central Bank of Nigeria (CBN) has sanctioned several Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs) during the festive season.
Each of the nine affected banks, including Fidelity Bank Plc, Zenith Bank Plc, and United Bank for Africa Plc, was fined ₦150 million for violating the CBN’s cash distribution guidelines. The penalties were imposed following spot checks on bank branches that revealed non-compliance.
The Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, confirmed the fines, emphasizing the importance of cash availability in maintaining public trust and economic stability. “Ensuring seamless cash flow is paramount, and the CBN will not hesitate to impose further sanctions on any institution found violating its guidelines,” she stated.
Enforcement and Monitoring
The CBN revealed that the fines would be directly debited from the affected banks’ accounts with the apex bank. The institution also pledged to intensify its investigations and monitoring of cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators.
In collaboration with security agencies, the CBN is cracking down on illegal cash sales and enforcing the POS operators’ daily cumulative withdrawal limit of ₦1.2 million.
Governor Cardoso’s Warning
CBN Governor Olayemi Cardoso reiterated the apex bank’s commitment to ensuring seamless cash flow during his address at the Chartered Institute of Bankers of Nigeria (CIBN) Annual Bankers’ Dinner in November 2024.
He warned financial institutions to strictly adhere to cash distribution policies or face severe penalties. “Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso said.
Future Consequences
The CBN has urged all financial institutions to comply with its cash distribution guidelines, warning that repeat violations would attract even stricter penalties.
This enforcement action underscores the apex bank’s determination to protect the financial ecosystem and ensure Nigerians have unhindered access to cash, particularly during periods of high demand.
