CBN to punish banks hoarding cash

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso has read riot act to banks and other financial institutions engaging in malpractices or refusing to make cash available to Nigerians.

Cardoso who spoke in Lagos at the Chartered Institute of Bankers’ of Nigeria (CIBN) dinner said sanction would be meted out to banks that fail to provide cash to customers as from December 1, 2024.

This is against the backdrop of the nationwide cash scarcity in recent times with many Point of Sale (POS) operators increasing their charges.

Many Nigerians have also expressed frustration as many automated telling machines (ATMs) are always empty.

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But Cardoso stated on Friday that the officials of the apex bank would begin to conduct routine checks at ATMs and any bank found wanting would be sanctioned.

He said, “Effective December 1, 2024, any bank that fails to provide cash to customers for any reason will face very strict sanction. We will be conducting on the spot checks of banks’ ATMs to ensure that there is cash in them, and we would punish banks that fail to supply cash to them.

“The CBN will continue to maintain a robust cash buffer to meet the country’s needs, particularly during high-demand periods such as the festive season and year-end.

Our focus is on ensuring a seamless cash flow for Nigerians while fostering trust and stability in the financial system.”

Cardoso urged customers to report difficulties withdrawing cash from bank branches or ATMs directly to the CBN with effect from December 1, 2024.