The Central Bank of Nigeria (CBN) has imposed fines totaling ₦1.35 billion on nine commercial banks for failing to ensure adequate cash supply at Automated Teller Machines (ATMs) during the festive period. This move is part of the CBN’s ongoing efforts to ensure that banks provide consistent and reliable cash services to the public, especially during peak periods. The fines were issued after the apex bank conducted spot checks on various ATMs across the country and discovered non-compliance with its cash distribution guidelines.
Each of the affected banks was fined ₦150 million. The CBN noted that the banks failed to meet the minimum cash requirements set by the regulator, which mandates them to ensure ATMs are fully stocked with cash at all times. This penalty is seen as a measure to push banks to improve their cash management systems and prioritize customer satisfaction. The regulator also warned that further violations of its guidelines would attract stricter sanctions in the future.
The banks penalized include major financial institutions such as 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. The CBN has directed that the fines be debited directly from the banks’ accounts held with the central bank. This measure is expected to ensure immediate compliance with the penalty.
According to the CBN, ensuring seamless access to cash through ATMs is essential for maintaining public trust in the banking system. The bank emphasized that cash shortages at ATMs can lead to public frustration and disrupt economic activities, particularly in rural areas where ATMs are the primary source of cash for many people. The apex bank further stated that consistent cash availability is critical for promoting financial inclusion in Nigeria.
The CBN has reiterated its commitment to enforcing cash circulation policies to ensure that banks serve the public better. The central bank stressed that the fines are not just punitive but also a wake-up call to banks to improve their cash management strategies. As the country continues to embrace digital financial services, the CBN insists that cash availability at ATMs must remain a priority to meet the needs of customers who still rely heavily on cash for transactions.
