The Central Bank of Nigeria (CBN) on the 6th of December 2022, introduced new cash withdrawal limits for banks and other financial institutions.
The new policy followed its recent currency redesign project in which it had expressed concerns over the high volume of cash outside the banking system.
There are also suggestions that this new move by the apex bank is an attempt to reduce the volume of cash in circulation to tackle vote buying as the 2023 general elections draw closer.
Under the new dispensation, the central bank restricted the maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week to N100,000 and N500,000 respectively.
According to the memo released by the CBN, it read thus;
“Further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.), 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 organizations 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 organizations, 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, Driver’s License.).
b. Bank Verification Number of the payee.
c. Notarized 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 authorizing the withdrawal.
Please further note the following:
- Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.
- Compliance with extant AMUCFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc., is required in all circumstances.
- Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.”
The memo further stated a note of warning to all who may want to bypass this new regulation;
Please note that aiding and abetting the circumvention of this policy will attract severe sanctions.
The above regulatory directives take effect nationwide from January 9th 2023.
Please be guided accordingly, the memo concluded.