CBN Imposes N100,000 Weekly Cash Withdrawal Limits On Nigerians
- Corporate organisations get N500,000 ceiling
- Okays N20,000 daily maximum on ATM withdrawal
In line with its cashless policy practice and moves to promote the redesigned Naira notes, the Central Bank of Nigeria (CBN) has imposed restrictions on cash withdrawals from over-the-counter and Automated Teller Machines (ATMs) to only N100,000 and N500,000 per week for both individuals and corporate organizations in the country.
Additionally, daily withdrawal by individuals from ATMs has been pegged at N20,000 and subject to N100,000 per week while Deposit Money Banks (DMBs) and Other Financial Institutions (OFIs) have also been directed to load only N200 and lower denominations into their ATMs.
In a circular issued to all DMBs and OFIs yesterday, the CBN stated thus; “Further to the launch of the redesigned naira notes by President Muhammadu Buhari on Wednesday, November 23, 2022, and in line with the cashless policy of CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following: the maximum cash withdrawal over the counter by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively.”
Signed by the Director, Banking Supervision Department of CBN, Mr. Haruna Mustafa, the circular also stated that; “Withdrawals above these limits shall attract processing fees of 5.0 percent and 10 percent, respectively; third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10 million on clearing cheques still subsist; 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.
“Only denominations of N200 and below shall be loaded into the ATMs; the maximum cash withdrawal via the point of sales terminals shall be N20,000 daily.”
However, explaining exceptional cases where consideration could be given to individuals and corporate bodies on withdrawals, the apex bank said; “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 million and N10 million 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.”
Moves Against Banks’ Devices Rejecting Cards
In another development, the CBN has also cautioned banks and acquirers to desist from the practice of deploying devices that discriminate between payment cards during banking transactions by customers of other banks.
According to a circular signed by its Director of the Payments Systems Management Department, Mr. Musa Jimoh, the CBN noted that this practice was against the provisions of the Guidelines on operations of Electronic Payment Channels in Nigeria (June 2020).
The Circular said; “CBN has observed that a number of the acceptance devices deployed by banks discriminate between payment cards. For the avoidance of doubt, all certified payment acceptance devices deployed in Nigeria are required to accept all transactions arising from any card issued by any Nigerian bank.
“This circular serves as a reminder of the following provisions of the Guidelines on Operations of Electronic Payment Channels in Nigeria (June 2020): Section 2.4.1.3
“This serves as a notice to all banks and acquirers to desist from the practice of discrimination, as observed breaches will attract appropriate regulatory sanctions”.
