CBN Penalizes 9 Banks With ₦1.35 Billion Fine For ATM Cash ShortagesReaffirms The Validity Of Old ₦1000, ₦500, And ₦200 Notes

The Central Bank of Nigeria fined nine banks ₦1.35 billion for failing to ensure cash availability via ATMs. Learn about the penalties, CBN’s guidelines, and the validity of old Naira notes.

The Central Bank of Nigeria (CBN) has enforced a ₦1.35 billion fine on nine commercial banks for failing to ensure the availability of Naira notes through Automated Teller Machines (ATMs) during the festive period. This decisive action demonstrates the apex bank’s commitment to maintaining uninterrupted cash flow across the nation.

CBN’s Enforcement of Cash Availability

The penalties, amounting to ₦150 million per bank, were imposed following the banks’ non-compliance with the CBN’s cash distribution guidelines. Spot checks conducted by the central bank revealed lapses, prompting the enforcement of this measure.

The affected banks include:

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 (UBA) Plc
Sterling Bank Plc

These fines were directly debited from the banks’ accounts with the CBN to underline the seriousness of the violations.

Zero Tolerance for Cash Hoarding
Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, reaffirmed the apex bank’s zero-tolerance policy for cash hoarding. She stated:

“Ensuring seamless cash flow is paramount to maintaining public trust and economic stability. Any institution violating cash circulation guidelines will face strict sanctions.”

To bolster compliance, the CBN continues to monitor cash distribution at bank branches and Point-of-Sale (POS) operators. Collaboration with security agencies is underway to tackle illegal cash sales and enforce the daily cumulative withdrawal limit of ₦1.2 million for POS operators.

Governor Cardoso’s Warning to Banks

Governor Olayemi Cardoso emphasized the importance of adherence to cash distribution policies during his address at the Chartered Institute of Bankers of Nigeria (CIBN) Annual Bankers’ Dinner in November 2024. He reiterated the CBN’s commitment to ensuring financial stability and public trust, warning that non-compliance would result in severe penalties.

Reaffirmation of Old Naira Notes’ Validity

Amid concerns and misinformation, the CBN has reassured the public of the validity of the old ₦1000, ₦500, and ₦200 notes. The bank highlighted that a Supreme Court ruling on November 29, 2023, permits the indefinite concurrent circulation of all designs of these denominations.

Key Takeaways:

Both old and redesigned notes, including commemorative editions, remain legal tender.
The public should disregard claims suggesting the expiration of old banknotes by December 31, 2024.

In a statement signed by Mrs. Hakama Sidi Ali, the CBN urged Nigerians to accept all Naira denominations for transactions and handle them responsibly to ensure durability.

“For the avoidance of doubt, all versions of the naira – old and new designs – remain valid and legal tender indefinitely.”

Conclusion

The Central Bank of Nigeria’s recent actions highlight its dedication to financial stability, efficient cash distribution, and public trust. As the regulator continues to monitor compliance, financial institutions and citizens are reminded of their roles in supporting a robust and stable monetary system.