The Central Bank of Nigeria (CBN) has announced a new policy that limits the cash withdrawal by individuals to a maximum of N20,000 cash withdrawal per day with effect from January 9, 2023.
According to a new memo to banks and other financial institutions issued on Tuesday and signed by the Director of Banking Supervision, Haruna .B. Mustafa, individuals will only be able to withdraw N100,000 per week (from over the counter, Point of Sale Machines or the Automated Teller Machines), while organisation can access N500,000 per week.
Banks have also been directed to load only N200 and lower denominations into their ATM.
After the policy takes effect, all cash withdrawals in excess of the stated limits will attract processing fees of 5% and 10%, respectively.
The new policy is coming barely weeks after President Muhammadu Buhari launched the newly redesigned N200, N500, and N1000 banknotes.
The memo reads:
“Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23, 2022 and in line with the Cash less policy of the CBN, all deposit money banks (DMBs) and other financial institutions (OFIs) are hereby directed to note and comply with the following:
- The maximum cash withdrawal over the counter (OTC) 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.
- 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.
- 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.
- 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.
- In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, 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 ID, International Passport, Driver’s License).
b. Bank Verification Number (BVN) of the payee.
c. Notarized customer declaration of the purpose for 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 authorising the withdrawal.
Please further note the following:
i. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department.
ii. Compliance with extant AMUCFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.
iii. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
Finally, please note that aiding and abetting the circumvention of this policy will attract severe
sanctions.
The above regulatory directives take effect nationwide from January 9, 2023.
Please be guided accordingly”.
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