"There Will be Sanctions": CBN to Release N1.4 Trillion to Address ATM Cash Shortages
- The CBN governor says the apex bank plans to inject N1.4 trillion into the banking system in the next three months
- The move is part of the CBN's efforts to end cash shortages and tackle bank liquidity issues in the country
- The apex bank warned that sanctions will be imposed on any bank that fails to dispense cash to customers as required
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the Stock Market.
The Central Bank of Nigeria (CBN) has announced plans to inject N1.4 trillion into the banking system over the next three months to improve cash flow.
Olayemi Cardoso, the CBN governor, revealed this during a press conference in Abuja on Tuesday, September 24, 2024.
Source: UGC
Addressing the issue of limited cash availability at automated teller machines (ATMs), Cardoso stated that the central bank is taking active steps to ensure adequate cash supply.
No justification for not dispensing cash
Cardoso stated that the central bank is making every effort to ensure there is an adequate cash supply in the system, adding that there is no longer any excuse for cash shortages.
Cardoso said:
“Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system.”
He mentioned that the CBN is actively working with all deposit money banks to ensure they are replenishing their ATMs and efficiently distributing cash to those who need it.
CBN to sanction banks not dispensing cash
Cardoso explained that a monitoring system has been established to oversee the performance of banks.
He warned that penalties will be imposed on any bank that fails to dispense cash as required.
The CBN, he said, has implemented a system to visit banks and ensure that operations are carried out as expected.
He said:
“And if they are not, again, there will be sanctions but I believe that at the stage we are in now, everybody realises that stakeholders play their part in ensuring that cash gets to the desired places they are intended to be.”
Over the last two years, Nigerians have faced occasional cash shortages due to various factors, including CBN policies, hoarding, and panic withdrawals by customers at ATMs.
Some commercial banks introduced withdrawal limits, restricting the amount customers could withdraw when using ATMs from other banks.
CBN orders banks to restrict accounts
In related news, Legit.ng reported that the CBN directed that all funded accounts without a Bank Verification Number and National Identification Number be restricted with no further transactions permitted from March 1, 2024.
This was disclosed in a circular to all commercial, merchant, non-interest and payment service banks and other financial institutions and mobile money operators.
The December 1, 2023 circular, which applies to all institutions regulated by the CBN, ordered banks to place a "Post No Debit or Credit" on any unfunded account.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
