CBN increases the weekly cap for cash withdrawals to N500,000

The maximum weekly limit for cash withdrawals by individuals and business entities through all channels has been raised by the Central Bank of Nigeria to N500,000 and N5,000,000, respectively.

The instruction is found in a circular that the bank released on Wednesday and that was signed by Haruna Mustafa, director of the banking supervision department.

The change comes two weeks after the CBN lowered the weekly over-the-counter cash withdrawal limits for individuals and business organizations to N100,000 and N500,000, respectively.

According to The PUNCH, the apex bank also reduced daily withdrawals at point-of-sale terminals and automated teller machines to N20,000.

Nigerians had a range of views to the proposal, and the House of Representatives even became involved.

The apex bank stated in the Wednesday circular that it based its upward review on input from stakeholders.

(1) The maximum weekly limit for cash withdrawals by individuals and corporate organizations across all channels must be N500,000.00 and N5,000,000.00, respectively.

2. When a cash withdrawal above the permitted limitations in (1) is necessary for justifiable reasons, there will be a processing fee of 3% for private people and 5% for corporate organizations, respectively.
3. In addition to (2) above, the financial institution must obtain from the customer the minimum information listed below and upload it to the CBN portal created for that purpose: a valid form of identification for the payee (such as a national ID, passport, or driver’s license), the payee’s bank verification number, the payer’s tax identification number, and a written approval from the financial institution’s MD or CEO authorizing the withdrawal.
4. “While the current clearing cheque limit of N10 million continues to exist, third party cheques over N100,000 shall not be available for payment over-the-counter.”
5. The CBN further stated that the banks supervisory department, the department in charge of overseeing other financial institutions, and the department in charge of managing the payments system shall get monthly returns on cash withdrawal transactions that exceed the predetermined limitations.
6. Compliance with current AML/CFT rules on KYC, ongoing customer due diligence, suspicious transaction reporting, etc., was also stated in the statement.
7. “Use of alternate channels (such as online banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) for banking transactions should be encouraged for customers.
8. The apex bank made the point that it understood the crucial function that cash played in assisting underserved and rural communities and that it would guarantee an inclusive approach as it undertook the shift to a more cashless society.
9. The CBN warned that aiding and abetting the circumvention of this policy will result in serious consequences.
10. “The following directives take effect countrywide beginning January 9, 2023,” the CBN stated. “They supersede that of December 6, 2022.”