CBN fines First Bank, Union Bank, 7 others N1.35bn for failing to dispense cash via ATMs

The Central Bank of Nigeria (CBN) has fined First Bank, Union Bank, and seven other lenders for failing to disburse cash via Automated Teller Machines (ATMs) during the Christmas and New Year celebrations.

Other affected banks are – Fidelity Bank Plc, Zenith Bank Plc, Globus Bank Plc, Providus Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.

The banks were fined N150 million each for failing to comply with the apex bank’s cash distribution guidelines.

Cumulatively, the banks were fined N1.35 billion for breaching the CBN’s regulations on cash distribution.

The CBN’s Acting Director of Corporate Communications Mrs. Hakama Sidi Ali, disclosed this in a statement on Tuesday in Abuja.

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She said the fines would be debited from the banks’ accounts with the CBN.

The spokesman added that the apex bank would not hesitate to further sanction any lender violating cash circulation guidelines.

The statement read: “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines, during the yuletide season.

“Each bank was fined N150m for non-compliance, 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.

“The affected banks include Fidelity Bank Plc, First Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.”

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