INFRACTIONS SANCTIONS

Sanctions for other erring PFIs shall include:
INFRACTIONS SANCTIONS 
 Diversion of funds to unauthorized activities 
 Amount diverted shall be recovered by the CBN
 Penal charge of the maximum lending rate of the institution on the amount diverted 
 Outright ban from participating under the Fund 2 Non rendition of returns 
 Fine of 2.5% of loan amount 
 Issuance of warning letter to the Management of the PFI 
 Failure to render returns for two consecutive quarters shall lead to recall of the outstanding loan amount and 1 year suspension. 3 False returns 
 False returns shall attract a recall of the loan and 2 years suspension from the fund 4 Non- compliance with 60% exposure of the loan amount to women entrepreneurs 
 Issuance of warning letter to Management
 Suspension of lending to male clients until the recommended ratio is complied with 
 Exclusion from the incentives under the Fund 5 Charging interest rate higher than prescribed
 Reversal of excess interest charged 
 Issuance of warning letter to Management 6 Failure to disburse approved funds within 5 working days to the borrowers 
 Penal charge of MPR + 300 basis points for DMBs/DFIs and maximum lending rate for other PFIs for the period the fund were not disbursed