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–Pix(above): Godwin Emefiele, CBN Gov
The Central Bank of Nigeria has made u-turn on its decision on maximum cash withdrawal limits.
In a new circular issued to all banks late Wednesday, the apex bank said it increased the maximum weekly limit for cash withdrawal across all channels, noting that individuals and corporate organisations can now withdraw N500,000 and N5,000,000 cash, respectively.
The circular which was signed by Haruna B. Mustafa, Director of Banking Supervision, reads inter alia: “In compelling circumstances where cash withdrawal above the limits is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.”
On third-party cheques above N100,000, the CBN, again, directed that it cannot be eligible for payment over the counter, while the extant limit of N10 million on clearing cheques stays.
“Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable,” the CBN further stessed.
It urged bank customers to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
CBN acknowledged that “bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities”.
“They will continue to perform these strategic functions in line with existing regulations governing their activities,” it said.
The CBN said it recognises “the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cashless society”.
The new directive takes effect nationwide from January 9.
The State Online reports that the Central Bank of Nigeria (CBN) has pegged weekly cash withdrawals over the counter to N100,000 for individuals and N500,000 for organisations regardless of their size, even as withdrawal at POS terminals had also been pegged at N20,000 per day.
This was contained in a new memo to banks issued on Tuesday, December 6, 2022, signed by the Director of Banking Supervision, Haruna .B. Mustafa.
The directive comes on the heels of CBN’s preparation to begin circulation for the redesigned three most valuable naira denominations (N1000, N500 and N200 notes) which take effect from next week, precisely on December 15, 2022.
The memo reads: “Further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (rtd.), on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following:
“1. The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.
“2. Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
“3. The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.
“4. Only denominations of N200 and below shall be loaded into the ATMs.
“5. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.
“6. In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements.
“Further to (6) above, you are required to obtain the following information at the minimum and upload same on the CBN portal created for the purpose:
“a. Valid means of identification of the payee (National Identity Card, International Passport, Drivers License.). b. Bank Verification Number of the payee. c. Notarised customer declaration of the purpose of the cash withdrawal. d. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable. e. Approval in writing by the MD/CEO of the bank authorising the withdrawal./SHARE THIS
- Tags: CBN, Haruna .B. Mustafa, Cash withdrawal limits