The Central Bank of Nigeria (CBN) has increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organizations to N500,000 and N5million, respectively.
Recall that the apex bank some weeks ago pegged weekly cash withdrawal limit at N100,000 for individuals and N500,000 for companies, a policy that threw the public into an uncomfortable financial place.
The apex bank said it made the decision based on feedback received from stakeholders.
The CBN said this in a letter addressed to banks on Wednesday through the office of director of banking supervision, headed by Haruna B. Mustafa.
Below is the memo as released by the Central Bank of Nigeria;
“The CBN hereby makes the following reviews:
1. The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organizations shall be N500,000.00 and N5,000,000.00 respectively.
2. In compelling circumstances where cash withdrawal above the limits in (1) is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organizations, respectively.
3. Further to (2) above, the financial institution shall obtain the following information from the customer, 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, or driver’s license)
b. bank verification number of the payee
c. tax identification number of both the payee and the payer
d. approval in writing by the MD/CEO of the financial institution authorizing the withdrawal.
4. Third party cheques above N100,000 shall not be eligible for payment over-the-counter, while the extant limit of N10 million on clearing cheques still subsist.”
5. Kindly further note the following;
a. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department, other financial institutions supervision and payments system management departments as applicable.
b. Compliance with extant AML/CFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.
c. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
6. Bank and mobile money agents are important participants in the financial system, enabling access to financial services in underserved and rural communities. They will continue to perform these strategic functions, in line with existing regulations governing their activities.
The CBN the vital role that cash played in supporting underserved and rural communities and would ensure an inclusive approach as it implemented the transition to a more cashless society.
All banks and OFIs are to note that aiding and abetting the circumventing of this policy will attract severe sanctions.
The above directives supersede that of December 6, 2022 and take effect nationwide from January 9, 2023,” the CBN said.