The Central Bank of Nigeria (CBN), yesterday, announced new maximum weekly cash withdrawal limits of N500,000 for individuals and N5 million for corporate organisations, respectively.
The increases, which cut across all channels, followed mounting pressure and protests from various interest groups over previously announced weekly over-the-counter cash withdrawal limits of N100,000 for individuals and N500,000 for organisations.
The CBN announced the new limits in a Letter to All Deposit Money Banks (DMBs), and Other Financial Institutions, Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs) and Agents.
The letter, titled: Re: Naira Redesign Policy – Revised Cash Withdrawal Limits, was signed by the Bank’s Director, Banking Supervision Department, Haruna Mustafa, with reference number: BDS/DIR/PUB/LAB/015/073, and sequel to feedback from stakeholders to a previous circular: BDS/DIR/PUB/LAB/015/069.
The circular reads in part: “…the Central Bank of Nigeria (CBN) hereby makes the following reviews:
“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.”
“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% and 5% 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 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.
Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
The CBN 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.
“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.”
“Kindly further note the following:
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.
“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.
The circular concluded by reiterating that “The CBN 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.”
It also warned that “All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,”
“The above directives supersede that of December 6, 2022 and take effect nationwide from January 9, 2023,” it added.
