After public outcry, the Central Bank of Nigeria (CBN) has upwardly reviewed the maximum weekly limit for cash withdrawals across all channels by individuals to N500,000 and N5million for corporate organisations.
The update is contained in a circular issued by the bank on Wednesday and signed by the Director of the Banking Supervision Department, Haruna Mustafa.
The development came two weeks after the apex bank in Nigeria reduced the weekly over-the-counter cash withdrawal limit for individuals to N100,000 and N500,000 for corporate organisations.
REPORTERS AT LARGE recalls that the CBN also reduced withdrawals at automated teller machines (ATMs) and point-of-sale terminals to N20,000 per day.
The policy had generated mixed responses from Nigerians. While some said it would have a negative effect on small businesses, others saluted it as a strategic move towards boosting the cashless policy and reducing the quantum of cash outside the banking system.
In the circular, the apex bank said it increased the cash withdrawal limit based on feedback received from stakeholders.
“The Central Bank of Nigeria (CBN) hereby makes the following reviews: (1) the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000.00 and N5,000,000.00 respectively,” the circular reads.
“2. In compelling circumstances where cash withdrawal above the limits in (1) is required for legitimate purposes, such requests shall be subject to a
processing fee of 3 per cent and 5 per cent for individuals and corporate organisations, respectively.
“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload the same on the CBN portal created for the purpose: valid means of identification of the payee (national ID, international passport, or driver’s license), bank verification number (BVN) of the payee, tax identification number (TIN) of both the payee and the payer, and an approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
“Third-party cheques above N100,000 shall not be eligible for payment over-the-counter, while the extant limit of N10 million on clearing cheques still subsists.”
The apex bank noted monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department, other financial institutions’ supervision and payments system management departments.
“Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances,” it added.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
The apex bank said it recognises the vital role that cash plays in supporting underserved and rural communities and would ensure an inclusive approach as it implements the transition to a more cashless society.
“All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” CBN said.
“The above directives supersede that of December 6, 2022, and take effect nationwide from January 9, 2023.”
