“They Were Forewarned”: Bank Customers React After CBN Fines Bank for Not Dispensing Cash
- Consumers argued that the CBN had good reason to penalize the banks for not ensuring that cash was available through their automated teller machines.
- Since they were alerted as early as November of last year, they claimed that the banks who are affected are solely to blame
- This occurred after the CBN penalized nine deposit money banks N1.35 billion for failing to ensure that there was cash available through ATMs
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Bank Customers Association of Nigeria has stated that the Central Bank of Nigeria's penalties against the banks for failing to guarantee cash availability through their automated teller machines were justified.
Source: Getty Images
This was revealed during a Wednesday exclusive conversation with Dr. Uju Ogubunka, president of BCAN.
Nine deposit money banks were fined a total of N1.35 billion by the CBN for their failure to guarantee cash availability through automated teller machines throughout the holiday season. Following spot checks that showed non-compliance with the apex bank's cash distribution norms, each bank was fined N150 million.
First Bank Plc, Fidelity 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 are among the impacted financial institutions. The banks' CBN accounts will be immediately debited for the penalty.
Speaking on the fines, Ogubunka said,
“We know that CBN was serious about what they said because, at the last Bankers’ Dinner, the CBN governor mentioned it; he said that they were not going to tolerate any disobedience to rules and regulations. That they have sanctioned them shows that they are serious.
“The banks that are victims have no one but themselves to blame, for they were forewarned as far as November last year. They deserve it. Maybe they will learn their lessons, and if they don’t, they will fall victim to the next round of penalties.”
He added,
“We are happy. If the banks have learnt their lessons, they should be able to put money in the ATMs. That does not mean that the point-of-sale terminal operators should not have money, but we have to be sensible about it because they are also a creation of CBN. We have to manage the system, but I’m happy that the CBN has started to impose penalties. It is a reward for disobedience.”
According to sources, the sanctioned banks reportedly poured cash into their ATMs on Wednesday.
CBN fines 9 banks 150 million each
Legit.ng reported that the Central Bank of Nigeria (CBN) has sanctioned commercial banks for failing to dispense cash via their ATMs during Christmas, worsening cash scarcity.
Following checks on their branches, the apex bank sanctioned each bank N150 million for non-compliance with its cash distribution guidelines.
The sanction follows several warnings from the apex bank to the banks to guarantee cash availability, especially in the Yuletide.
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Source: Legit.ng
