By Our Correspondent
The Central Bank of Nigeria has issued a stern warning to Deposit Money Banks over cash hoarding and diversion, stating that such actions will attract stiff penalties.
This warning comes after a report by The Razor News revealed that banks in Anambra State were hoarding cash to maximize profits during the yuletide season, forcing real banking transactions to shift to Point of Sale operators.
According to The RAZOR report, banks were limiting withdrawals to N100,000 at a time, instead sending large sums to POS operators in exchange for hefty commissions, resulting in exorbitant fees for customers.
The CBN noted that such practices undermine access to cash, particularly during high-demand periods.
In a circular dated November 13, 2024, the CBN announced intensified measures to ensure efficient and transparent cash disbursement.
The apex bank warned that defaulters would face appropriate sanctions, which may include additional fines or other regulatory actions.
The CBN directed banks to implement internal controls for accountability and transparency and prioritize dispensing cash through Automated Teller Machines.
To enforce compliance, the CBN will collaborate with law enforcement agencies for spot checks and mystery shopping activities.
The Razor News reports that ATMs have remained empty in recent months due to sustained low cash supply, while POS operators fulfill customers’ cash needs.
The public has commended The RAZOR NEWSPAPER for its groundbreaking exclusive report, which led to the CBN’s crackdown on cash hoarding.
A Respondent, Ifeanyi Chukwudi said, ‘We laud The RAZOR NEWSPAPER for its exposé on cash hoarding. We credit the exclusive report for prompting the CBN’s decisive response. This is the power of responsive journalism.”
