CBN to Sanction Banks for Cash Dispensing Failures, Plans to Inject N1.4 Trillion Into Circulation
The Central Bank of Nigeria (CBN) has announced that it will impose sanctions on banks that fail to dispense cash through their Automated Teller Machines (ATMs), as part of its efforts to ensure sufficient cash circulation in the economy. This was revealed by CBN Governor, Yemi Cardoso, during a press briefing following the 297th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday.
Governor Cardoso stressed that all deposit money banks must guarantee a steady supply of cash for customer withdrawals. To enforce this, the CBN has introduced a monitoring system that will track banks’ compliance with the directive. Banks found lacking will face strict penalties.
“We have devised a monitoring and spot-checking system, where we will visit the banks to ensure that things are done as expected. Banks that fail to meet this requirement will be sanctioned,” Cardoso stated. He also emphasized the responsibility of all stakeholders in ensuring cash reaches the people who need it most.
In a further effort to alleviate cash shortages, Cardoso disclosed that the CBN plans to release an additional N1.4 trillion into circulation over the next three months. This move is aimed at improving cash availability across bank branches and ATMs, addressing the cash insufficiency challenges faced by many customers in recent times.
Cardoso explained, “Another N1.4 trillion is likely to be delivered over the next three months to support cash flow within the system. From our perspective, we are doing everything possible to ensure there is sufficient cash. There is no excuse for banks not having enough cash available.”
The CBN governor reiterated the importance of effective cash deployment by banks, underscoring the need for banks to ensure their ATMs are dispensing cash efficiently. He noted, “We are working closely with all deposit money banks to ensure they are adequately supplying cash through their ATMs. At no point should customers be unable to withdraw cash.”
The CBN’s stringent measures and planned cash injection are part of a broader strategy to stabilize the nation’s cash flow and ensure easy access to currency across the banking system.
