CRR: Nath Ude-led NOVA Merchant Bank fined by CBN

This is not a good time for Nath Ude-led NOVA Merchant Bank Limited as the financial institution has ran into trouble with the Central Bank of Nigeria, CBN.

NOVA Merchant Bank, founded by Phillips Oduoza, has been debited N 1.5 billion for failing to meet its 27.5 per cent Cash Reserve Requirement (CRR) obligation.

The CRR rule empowers the Central Bank to hold up to 27.5 per cent of customer deposits held by commercial banks, restricting the banks from accessing the money.

Cash Reserve Ratio was set as 27.5 % in Apr 2021.

ALSO READ:CRR: CBN Debits Zenith Bank, Providus, Unity Bank, Ecobank, Uba, FCMB, others N356.1bn

The fresh debit, which IDOMA VOICE reliably gathered, occurred last Friday, has left many stakeholders in the banking very upset as the apex bank recently suspended debiting banks for not meeting the requirement.

Among other top banks debited by CBN alongside NOVA Merchant Bank Limited are Zenith Bank and Providus, who were debited N170 billion, N40 billion respectively.

Others are: FCMB N39 billion, First Bank of Nigeria Limited N27 billion, Guaranty Trust Bank Plc N20 billion and Citibank N12 billion.

Stanbic IBTC bank, Union Bank of Nigeria Plc and Polaris Banks were debited N10 billion each, Keystone Bank was debited N6 billion, Ecobank Nigeria N5 billion, Sterling Bank Plc, N3.6 billion and Fidelity Bank N2 billion.