The Central Bank of Nigeria (CBN) Wednesday, tinkered with its earlier directive on cash withdrawal limits, giving room for more cash following agitations for increase by Nigerians.
In its latest directive, it increased maximum weekly withdrawal across all channels by individuals and corporate organizations to N500,000.00 and N5,000,000.00 respectively.
Apart from other conditions it gave for compelling withdrawals above the stated limit, CBN directed that
such requests shall be subject to a processing fee of three percent and five percent for individuals and corporate organizations, respectively.
In its earlier circular on December 6, CBN had directed that with effect from January 9, 2023, the maximum over-the-counter cash withdrawal limit by individuals and corporate organisations per week, would be N100,000 and N500,000 respectively, adding that withdrawals above these limits would attract processing fees of five per cent and 10 per cent respectively.
It further stated that maximum cash withdrawal per week via Automated Teller Machines, from January 9, would be N100,000 subject to a maximum of N20,000 cash withdrawal per day.
The apex bank also directed banks to load only N200 and lower denominations into their ATMs.
However, in its latest circular dated December 21, 2022 and signed by the Director of Banking Supervision, Haruna Mustafa, noted that the review was based on feedback received on its earlier directive on withdrawal limit.
The apex urged customers to resort to use of various channels of digital banking in their transactions, warning that aiding and abetting the circumvention of this policy on withdrawal limits will attract severe sanctions.
The full text of the circular which superceded its circular of December 6 and takes effect from January 9, 2023 is as below:
December 21, 2022
BSD/DIR/PUB/LAB/015/073
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
RE: NAIRA REDESIGN POLICY – REVISED CASH WITHDRAWAL LIMITS
Following our circular BSD/DIR/PUB/LAB/015/069 dated December 6, 2022 on the above subject and based on feedback received from stakeholders, 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 organizations shall be 500,000.00 and #¥5,000,000.00 respectively.
- 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.
- 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:
a. Valid means of identification of the payee (National ID, international Passport, or Driver’s License).
b. Bank Verification Number (BVN) of the payee.
c. 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.
- 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.
5, Kindly further note the following:
a) 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 applicable,
b} Compliance with extant AML/CFT regulations relating to KYC, on-going customer due diligence currency and suspicious transaction reporting etc, is mandatory in all circumstances,
C) 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, nine with existing regulations governing their activities.
The CBN recognizes the vital role that cash plays in supporting underserved and rural communites and will ensure an inclusive approach as it implements the transition to a more cash-less society
All banks and OFIs 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.
HARUNA B. MUSTAFA, DIRECTOR OF BANKING SUPERVISION
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