Why Banks Deserved CBN Fines for Failing to Load ATMs
The Bank Customers Association of Nigeria (BCAN) has expressed support for the Central Bank of Nigeria’s (CBN) decision to fine banks for not ensuring cash availability in their Automated Teller Machines (ATMs) during the festive season.
The Penalties for Non-Compliance
The CBN imposed a total fine of ₦1.35 billion on nine banks, including Fidelity Bank, First Bank, Keystone Bank, Union Bank, Globus Bank, Providus Bank, Zenith Bank, United Bank for Africa, and Sterling Bank. Each bank was fined ₦150 million for violating cash distribution guidelines. These fines were directly debited from the banks’ accounts with the CBN.
BCAN’s Stance
Speaking on the matter, Dr. Uju Ogubunka, BCAN President, stated, “The banks deserve these penalties. They were forewarned as far back as November. Hopefully, this serves as a lesson to comply with regulations.”
Ogubunka praised the CBN’s action, adding that it shows a commitment to enforcing banking rules. He dismissed claims from banks about cash shortages, asserting that the CBN would have verified before imposing fines.
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Improved ATM Cash Availability
In the following of the penalties, reports indicate that affected banks promptly refilled their ATMs, signaling that the sanctions are having the intended effect.
Conclusion
The CBN’s penalties underscore the importance of accountability in the banking sector. As the BCAN President emphasized, such actions protect customers and reinforce compliance with regulatory guidelines.
