The recent spot checks conducted by the Central Bank of Nigeria (CBN) on Deposit Money Banks (DMBs) have shown that much of the cash supplied to the banks goes to VIP customers, leaving the majority of customers with too little to meet their demand, it was gathered yesterday.
The apex bank is said to have been alarmed by the discovery that the DMBs are prioritising the interest of their VIP customers in cash disbursements over ordinary customers, reports The Nation.
Sources said yesterday that the CBN is now poised to sanction, in the coming days, any bank found guilty of this malpractice.
That is aside the N150 million penalty it plans to impose on any bank branch found engaging in illegal flow of freshly minted naira notes to currency hawkers and unscrupulous agents.
A CBN source told our correspondent in Abuja that the spot checks on DMBs uncovered widespread preferential treatment for VIP customers, with cash hoarded for their use, while regular customers face difficulty accessing funds across the counters and at automated teller machines (ATMs).
As part of its corrective measures, the CBN has issued a directive mandating DMBs to ensure equitable cash disbursement over-the-counter (OTC) and through ATMs.
The bank said it would intensify its oversight to enforce compliance, warning that severe sanctions await banks found conniving with Point-of-Sale (PoS) operators to restrict cash flow to ordinary customers.
To aid its enforcement efforts, the CBN has urged members of the public who experience difficulty accessing cash at DMBs or ATMs to report such incidents using designated channels.
The public is advised to provide the following details when filing complaints about inaccessible cash at DMB branches or ATMs: Account name/Name of the DMB/Amount involved and Time and Date of the incident.
Complaints can be submitted via the phone numbers of CBN branches located in the state where the incident occurred or by email through the contact details listed on the CBN website for each state.
The CBN noted that public feedback is critical to identifying and addressing the bottlenecks hindering cash availability.
This intervention forms part of its broader strategy to enhance currency circulation and ensure fair treatment for all bank customers.
According to the CBN official, “the apex bank’s commitment to equitable cash distribution aligns with its role as a regulator to safeguard the financial system and maintain public trust in the banking sector.”
The public is encouraged to remain vigilant and promptly report any irregularities, as the CBN works to restore confidence and fairness in Nigeria’s cash distribution system.
With Christmas and New Year festivities fast approaching, Nigerians need more cash to do their shopping. Accessing cash across the counters and at ATM outlets continues to be a problem.
The banks are rationing cash for customers as they contend with scarcity of naira notes.
Customers of some commercial banks in Ajose Adeogun, Victoria Island, Lagos branches of banks complained that the lenders were not meeting their cash needs.
But the story is different with POS operators who have ready cash to dispense to customers.
