Some experts have commended the Federal Government for imposing fines on nine deposit banks for failing to ensure the availability of cash through Automated Teller Machines (ATMs).
They said this in separate interviews with Newsmen in Lagos on Monday, noting that the fines would serve as a deterrent to other banks.
Dr Uju Ogubunka, former Executive Secretary, Chartered Institute of Bankers of Nigeria (CIBN), said that the sanction on the banks was timely.
“This issue is part of what the apex bank, as the regulator, emphasised during the annual bankers’ dinner with deposit money banks last year.
“The regulator forewarned them, and if any bank is still engaging in such practices and gets caught, they will be fined as a deterrent.
“If any bank knows the weight of the penalty surpasses the gain, ideally it should discourage them not to engage in such business again,” he added.
He noted that it was wrong for banks to withhold cash from their ATMs, especially at a time when the Central Bank of Nigeria (CBN) is enhancing its financial inclusion policy.
“Having ATMs is one of the ways to diversify the payment system and ensure funds reach all parts of the country regardless of location,” Ogubunka said.
“However, it is often the case that when people visit ATMs, there is no cash to dispense. Meanwhile, PoS operators tend to issue money at exorbitant costs, which is unfair to the public,” he stressed.
Similarly, Mr Chris Nemedia, former Director of Research, CBN also endorsed the sanctions on the commercial banks.
“The penalty accorded to the banks is appropriate, the various banks should allow the money to adequately circulate within the system.
“The regulator should, often times, discipline the banks when they flout their rules,” Nemedia said.
He noted that the banks should be hoarding cash and diverting them to the (PoS) machine outlets while the citizen are suffering.
“This is wrong and not to be condoned by the regulator,” Nemedia said.
Freedomonline reports that the CBN imposed N1.35 billion fine on nine Deposit Money Banks (DMBs) for failing to ensure adequate availability of naira notes through the ATMs during the yuletide season.
The banks were fined N150 million for non-compliance with the CBN’s cash distribution guidelines following spot checks conducted at their branches.
A statement from the CBN confirmed the enforcement action, stressing the apex bank’s commitment to guaranteeing seamless cash flow, particularly during periods of high demand.
The apex bank revealed that the fines would be debited directly from the affected banks’ accounts.
