CBN to sanction banks for failure to dispense cash through ATMs, pump N1.4trn into circulation

The Central Bank of Nigeria (CBN) has unveiled plans to sanction banks who fail to dispense cash via their Automated Teller Machines (ATMs).

This was disclosed by the apex bank’s governor, Olayemi Cardoso, while speaking during a press conference in Abuja on Tuesday.

Cardoso said a monitoring system has been put in place to check the services of the banks.

He added that N1.4 trillion will be distributed in the next three months to aid cash flow within the banking system.

According to the CBN governor, banks do not have any excuse not to dispense cash.

“Another N1.4 trillion is likely to be delivered in another three months to aid that whole process of cash within the system,” he said.

“So from our perspective, we are doing everything possible to ensure that there is sufficient cash in the system. There is no excuse for not having sufficient cash in the system.

“Now it goes to the deployment of that cash and quite frankly, we are working very, very closely, we are engaging with all the deposit money banks to ensure that they are putting these things through their ATMs, effectively dispensing cash to those that are in need.

“And whether they are in need or not, that’s the function of the deposit money banks. And at all points in time, there should be sufficient cash in their system that nobody should go there without being able to withdraw.”

“We ourselves, have devised a monitoring system, a spot-checking system, whereby we will go to the banks and just ensure that these things are done in the way and manner in which they are meant to be done,” he said.

“And if they are not, again, there will be sanctions but I believe that at the stage we are in now, everybody realises that stakeholders play their part in ensuring that cash gets to the desired places they are intended to be.”