The Central Bank of Nigeria (CBN) has announced an upward review of weekly cash withdrawal limits for.individuals and corporate organizations in Nigeria.
This was contained in a circular to Deposit Money Banks (DMBS) and Other Financial Institutions released by the bank’s Director of Banking Supervision, Haruna Mustapha on Wednesday, December 21, 2022.
Recall, the apex bank in the move
to strengthen the Naira, had capped weekly cash withdrawal for individuals and corporate organizations to N100,000 and N500,OOO respectively.
However, following an outcry from Nigerians especially the National Assembly, the bank has decided to increase the weekly cash withdrawal for individuals and corporate organizations to N500,000 and N5,000,000 respectively.
CBN said, “Following our circular BSD/DlR/PUB/LAB/015/069 dated December 6, 2022 on the above subject and based on feedback received from stakeholders, the Central Bank of Nigeria (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, OOO,OOO.OO respectively.
2. In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of 3% and 5% 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 (BVN) of the payee.
c. Tax Identification Number (TIN) of both the payee and the payer
d. Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
4. Third party cheques above N 100,000 shall not be eligible for payment over the counter, while the extant limit of NIO million on clearing cheques still subsist. Classified as Confidential
5. Kindly further note the following: a. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.
b. Compliance with extant AML/CFT regulations relating to KYC, on-going customer due diligence, currency and suspicious transaction reporting etc. is mandatory 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 recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society.
“All banks and OFls are to note that aiding and abetting the circumvention 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 Circular said.