[JUST IN] Naira redesign: CBN limits cash withdrawals to N100,000 per week for individuals, restricts ATM transactions to N20,000 per week

Akinwande Soji-Ojo

In its bid to promote cashless policy, the Central Bank of Nigeria(CBN) has imposed a limit on cash withdrawals in the country.

The apex bank disclosed this in a circular directed to deposit banks and other financial institutions dated December 6, 2022.

According to the circular signed by the Director of Banking Supervision, Haruna Mustafa, the CBN has restricted over the counter cash withdrawals for individuals to N100,000 per week and N500,000 per week for corporate organisations respectively.

The CBN noted that withdrawals above the limits attract five per cent processing fee for individuals and 10 per cent for corporates.

The development is coming two weeks after the bank unveiled its newly redesigned naira notes of N1,000, N500 and N200 on November 23, 2022.

“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 five per cent and 10 per cent respectively

“Third party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on Gearing cheques still subsist.

“The maximum cash withdrawal per week via Automat. Teller Machine (ATM) shall be N100.000 subject to a maximum of N20,000 cash withdrawals 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,” it said.

The CBN added that where cash withdrawals above the prescribed limits is required for legitimate purposes, the payee will be required to obtain a valid means of identification (National ID, International Passport, Driver’s License), Bank Verification Number (BVN),Notarized customer declaration of the purpose for the cash withdrawal, Senior management approval for the withdrawal by the Managing Director, where applicable and approval in writing by the MD/CEO of the bank authorising the withdrawal, and upload same on the apex bank’s portal created for the purpose

“Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department

“Compliance with extant AML/CFT 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,” it added.

The CBN said the regulatory directives will take effect nationwide from January 9, 2023.