.. Slams N1.350bn On Erring Banks For Hoarding Cash During Yuletide
The Central Bank of Nigeria (CBN), has identified nine Deposits Money Banks (DMBs), as responsible for scarcity of cash in the country during the yuletide season.
Omonaijablog reports that there was scarcity of cash during the yuletide season, thereby, making Nigerians go through harrowing experience before getting access to their money.
Also, due to scarcity of cash, Point of Sales (POS) operators increased their charges by 100 percent.
However, on Tuesday, the apex regulatory bank, identified and slammed a whooping N150million fine on each banks that hoarded cash and subjected Nigerians to suffering in the yuletide season.
The banks are Keystone Bank Plc, Globus Bank Plc, Providus Bank Plc, Sterling Bank Plc and five others.
CBN said the banks failed to upload Naira notes on their respective Automated Teller Machines(ATMs) across the country.
This, according to the apex bank, was a clear message of zero tolerance for cash flow disruptions, hence, was fined N150 million for non-compliance,
This development was in line with the CBN’s cash distribution guidelines, following spot checks on their branches.
The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
Communication with the banks revealed that the fines would be debited directly from their accounts with the apex bank.
The Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali confirmed the development, in a statement made available noting that, “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, she added.
“The CBN’s investigations and monitoring will continue to scrutinise cash hoarding and rationing, both at bank branches and by Point-of-Sale (POS) operators. The Central Bank is working with security agencies to crack down on illegal cash sales and operational violations, including enforcing POS operators’ daily cumulative withdrawal limit of N1.2 million.
Governor Olayemi Cardoso, in his address at the Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria (CIBN) in November 2024, warned banks to strictly adhere to cash distribution policies or face severe penalties.
He underscored the CBN’s commitment to maintaining a robust cash buffer to meet Nigerians’ needs.
“Our focus remains on fostering trust, ensuring stability, and guaranteeing seamless cash circulation across the financial system,” Cardoso said.
The CBN urged all financial institutions to comply with its guidelines, warning that further violations would attract swift and decisive sanctions.