CBN Fines Bank N150 Million for Cash Hoarding

The Central Bank of Nigeria (CBN) has imposed a N150 million fine on a commercial bank for failing to dispense cash through its Automated Teller Machines (ATMs). The fine follows an unannounced inspection that revealed deliberate cash hoarding and ATM manipulation by the bank.

During the inspection, the CBN uncovered that the bank had disabled its ATMs, effectively denying customers access to their funds while prioritizing cash disbursement to select VIP clients. Sources within the apex bank confirmed these findings, emphasizing that such practices will not be tolerated.

A CBN official warned that penalties will extend beyond fines if such behavior continues. “The Bank will not spare any Deposit Money Bank caught hoarding cash or favoring VIP customers over others,” the official stated. The apex bank has been conducting spot checks across the country, exposing similar malpractice in other financial institutions.

In addition to financial penalties, the CBN plans to escalate its enforcement measures by publicly naming and shaming offending banks and prosecuting implicated officials. “This fine is just the beginning. The CBN is determined to hold banks accountable for actions that undermine public trust and the integrity of the banking system,” the source added.

While addressing the broader challenges facing the banking sector, the CBN reiterated its commitment to promoting a cashless economy. A senior official highlighted ongoing efforts to encourage the use of electronic channels, despite the frustration faced by account holders. “The difficulties customers experience are undermining our push for a cashless economy. We are intensifying initiatives to restore public confidence in electronic banking solutions,” the official said.