Barely 10 days to the takeoff of the distribution of the redesigned Naira notes, the Central Bank of Nigeria (CBN), on Tuesday announced revised cash withdrawal limits over the counter (OTC) for individuals and corporate organisations.
The directive which takes effect nationwide from January 9, 2023, the bank CBN noted, is part of encouraging the public to use alternative channels such as internet banking, mobile banking apps, USSD, cards/Point of Sale terminals. eNaira, among others in the conduct of their banking transactions.
In a letter to all deposit money banks (DMBS) and other financial institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs), referenced BSD/DIR/PUB/LAB/015/069, and dated December 6, 2022, the cap for individual and corporate organization withdrawals is now N100,000 and N500,000 respectively.
The maximum cash withdrawal per week via Automated Teller Machine (ATM) was pegged at N100.000, subject to a maximum of N20,000 cash withdrawal per day.
The CBN said in the circular signed by Haruna B. Mustafa, Director of Banking Supervision “withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.”
Third party cheques above N50,000, he added, “shall not be eligible for payment over the counter, while extant limits of 110,000.000 on clearing cheques still subsist.
Also, in an apparent bid to encourage the use of lower denominations, the CBN directed that “only N200 and below shall be loaded into the ATMs.”
Also, the maximum cash withdrawal via PoS shall be N20.000 daily, the apex bank said, adding that “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 15,00,0,000.00 and 110,000.000.00 for individuals and corporate organisations. Respectively.”
This shall, however, be subject to the set processing fees, in addition to enhanced due diligence and further information requirements.
Banks will also be required to render monthly returns on cash withdrawal transactions above the specified limits to the Banking Supervision Department, including compliance with extant Anti Money Laundering regulations relating to the Know-Your-Customer requirements, in addition to the ongoing customer due diligence and suspicious transaction reporting in all circumstances.
The statement warned that “aiding and abetting the circumvention of this policy will attract severe sanctions.”