CBN slashes individuals’ cash withdrawal limit by 80%
The Central Bank of Nigeria (CBN) has reduced the cash withdrawal limit for individuals from N500,000 to N100,000 and that of corporate organisations to N500,000 from N3 milion.
The apex bank has set N100,000 and N500,000 as the maximum limits for withdrawal over the counter by individuals and corporates respectively with effect from January 9, 2023.
This was disclosed on Tuesday in a letter signed by Haruna Mustafa, director of banking supervision at CBN. The revised cash withdrawal limit followed the launch of the redesigned naira notes by President Muhammadu Buhari on November 23, 2022, and in line with the cashless policy of the CBN.
The letter, addressed to all banks and other financial institutions, said cash withdrawals above the stated limit shall attract a processing fee of 5 percent for individuals and 10 percent for corporates.
“It is another step to drive the cashless economy agenda of the Central Bank of Nigeria,” Ayodele Akinwunmi, relationship manager, corporate banking at FSDH Merchant Bank Limited, said.
According to the letter, third-party cheques above N50,000 shall not be eligible for payment over the counter, while limits of N10 million n clearing cheques still subsist.
The CBN said the maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day, adding that only denominations of N200 and below shall be loaded into the ATMs.
The maximum cash withdrawal via Point of Sale (PoS) terminal shall be N20,000 daily. “However, in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purpose, such cash withdrawal shall not exceed N5 million and N10 million for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees, in addition to enhanced due diligence and further information requirements,” it said.
The CBN listed some information required for such compelling circumstances, which are expected to be uploaded on the CBN portal created for that purpose.
Such information include valid means of identification of the payee (national ID, international passport, driver’s licence), Bank Verification Number of the payee, notarised customer declaration of the purpose for the cash withdrawal, senior management approval for the managing director of the drawee, where applicable and approval in writing by the managing director/CEO of the bank authorising the withdrawal.
The CBN said monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department.
“Compliance with extant AML/CFT regulations relating to Know Your Customer (KYC), ongoing customer due diligence and suspicious transaction reporting, etc. is required in all circumstances,” the CBN said in the letter.
The letter said customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, card/PoS, eNaira, etc) to conduct their banking transactions.
“The above regulatory directives take effect nationwide from January 9, 2023. Please be guided accordingly,” it said.
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