Newsletter Subscribe
Enter your email address below and subscribe to our newsletter
In order to improve cash availability across Nigeria, the Central Bank of Nigeria (CBN) has announced new regulations targeting banks with non-functional Automated Teller Machines (ATMs).
This initiative is part of the broader CBN ATM regulations designed to ensure that customers have reliable access to cash when needed.
CBN Governor Yemi Cardoso, during a recent Monetary Policy Committee (MPC) meeting in Abuja, emphasized that banks must maintain sufficient cash reserves at their ATMs to facilitate withdrawals.
Failure to comply with these directives will result in penalties for the offending banks.
Many Nigerians have experienced frustration with ATMs that are either empty or completely non-operational, particularly those located outside bank branches.
Reports indicate that some machines, like the GTB ATM in certain neighborhoods, have not dispensed cash for months.
This situation has sparked public outcry and highlighted the urgent need for action from financial authorities.
In response, the CBN is implementing a monitoring system to track ATM cash availability and ensure compliance with its new policies.
The aim is clear: to hold banks accountable for their services and guarantee that customers can withdraw cash without unnecessary delays or excuses.
To support this initiative, the CBN plans to inject an additional ₦1.4 trillion into circulation. This move is intended to enhance cash availability at both ATMs and bank branches across the country.
Governor Cardoso noted that this effort is crucial as it aligns with the CBN’s goal of tightening liquidity while encouraging deposits within the formal banking system.
As of July 2024, data revealed a concerning trend: the amount of money outside the banking system had fallen to ₦3.66 trillion.
Although total currency in circulation saw a slight increase to ₦4.05 trillion, the drop in cash outside banks signifies a shift towards increased banking activity.
The CBN’s efforts are aimed at reversing this trend and ensuring that cash remains accessible to all Nigerians.
The CBN’s approach involves close collaboration with banks to facilitate smooth operations and improve customer experiences.
Cardoso stated that the central bank would work alongside financial institutions to ensure that ATMs are consistently stocked with cash, thereby eliminating excuses for any shortages.
This partnership is essential as it not only addresses immediate concerns regarding ATM functionality but also aims to foster long-term stability within Nigeria’s financial ecosystem.
By reinforcing CBN and Bank ATM policies, the central bank hopes to build trust among consumers who rely on these machines for their daily transactions.
Read Next: Official: No More Cybersecurity Levy, CBN Confirms
For consumers, these changes are expected to bring about significant improvements in access to cash.
The penalties imposed on banks failing to meet these new standards serve as a deterrent against negligence in service delivery.
As customers become more aware of their rights regarding ATM access and functionality, they may feel empowered to demand better service from their banks.
Additionally, increased cash availability could stimulate economic activity by ensuring that individuals and businesses have sufficient funds for transactions.
This could lead to enhanced consumer confidence and spending, further benefiting Nigeria’s economy.
In conclusion, the CBN’s proactive stance on regulating ATM functionality marks a critical step towards enhancing financial accessibility in Nigeria.
By penalizing banks with empty ATMs and ensuring a steady flow of cash into circulation, the central bank aims to create a more reliable banking environment for all Nigerians.
As these measures take effect, it remains essential for both banks and consumers to adapt and collaborate in fostering a robust financial landscape.
Was this information useful? Drop a nice comment below. You can also check out other useful contents by following us on X/Twitter @siliconafritech, Instagram @Siliconafricatech, or Facebook @SiliconAfrica.