- Weekly withdrawal threshold also moves up
- Exemption of embassies, diplomatic missions, aid-donor agencies from specific cash policies no longer applicable
The Central Bank of Nigeria (CBN) has scrapped the limit on cumulative cash deposit limit for individuals and corporates while also raising the weekly cash withdrawal threshold across all financial channels from N100,000 to N500,000.
According to the apex bank, effective January 1, 2026, the cumulative cash deposit will be abolished, with the previous fees charged on excess deposits no longer applicable.
The latest directive is contained in a circular to all banks titled, “Revised Cash-Related Policies”, and signed by Dr. Rita Sike, Director, Financial Policy & Regulation Department.
According to the circular, the policy revisions were meant to moderate the rising costs of cash management, address security concerns, and curb money laundering risks linked to the country’s heavy reliance on cash transactions.
The apex bank also explained that previous cash-related policies were introduced to reduce cash usage and encourage the adoption of electronic payment channels.
It further stated that evolving economic and operational realities necessitated a review to update provisions in line with present-day circumstances.
With the revised rules also setting the cumulative weekly withdrawal limit for individuals at N500,000 and N5 million for corporate accounts, withdrawals exceeding these limits will incur excess charges of three percent for individuals and five percent for corporates, with proceeds shared in a 40:60 ratio between the CBN and
operating banks or financial institutions as specified in the circular.
Additionally, the special monthly authorisation that allowed individuals to withdraw N5 million and corporates N10 million once a month has been abolished.
For Automated Teller Machines (ATMs), daily withdrawal remains capped at N100,000 per customer, with a maximum of N500,000 weekly, which forms part of the overall weekly withdrawal limit applicable to all channels, including point-of-sale (POS) transactions.
Furthermore, the circular also directed banks to load all currency denominations in ATMs, while the existing limit on over-the-counter encashment of third-party cheques remains pegged at N100,000. Such withdrawals will also be counted as part of the cumulative weekly limit.
By the circular, banks are required to render monthly returns to the relevant supervisory departments, including the Banking Supervision Department, Other Financial Institutions Supervision Department, and the Payments System Supervision Department.
On revenue-generating accounts of federal, state, and local governments, as well as the accounts of microfinance banks and primary mortgage banks held with commercial and non-interest banks, the CBN said these are exempted from the new withdrawal and excess-fee rules.
On the other hand, it stated that the long-standing exemption previously enjoyed by embassies, diplomatic missions, and aid-donor agencies will no longer be applicable in the new policy dispensation
