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CBN Revises Cash Withdrawal Limit
The CBN has revised the cash withdrawal limit.
Eko Hot Blog reports that the Central Bank of Nigeria (CBN) has revised the cash withdrawal limit earlier announced this month.
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This was disclosed in a circular signed by the CBN director of Banking Supervision, Haruna Mustafa.
The development comes two weeks after the CBN reduced the weekly over-the-counter cash withdrawal limit for individuals to N100,000 and that of corporate organisations to N500,000.
The apex bank also reduced withdrawals at automated teller machines (ATMs) and point-of-sale terminals to N20,000 per day.
The policy had generated mixed reactions from Nigerians.
According to the latest circular, the apex bank has raised the weekly withdrawal limit for individuals from N100,000 to N500,000.
It also raised the weekly limit for corporations to N5 million.
The CBN said it made the upward review based on feedback received from stakeholders, adding that the revised policy takes effect nationwide from January 9, 2023.
The circular reads in part, “Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022 on the above subiect and 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 organizations shall be #500,000.00 and N5,000,000.00 respectively.
“2. In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of 3% and 5% for individuals and corporate organizations, respectively.
“3. Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload 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 subsist.”
The CBN said 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.
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“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”
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