The Central Bank of Nigeria (CBN) has reviewed its policy on cash withdrawal limits, increasing weekly withdrawals for individuals and corporate organisations to N500, 000 and N5 million, respectively.
In a circular seen by Nairametrics, the apex bank explained that the review became necessary following the feedback it received from stakeholders.
The CBN also noted that it is aware of the important role that cash plays in the Nigerian economy, particularly in rural Nigeria where virtually all transactions are cash-based.
- “The CBN recognises 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 OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” part of the circular by the CBN said.
Note that the review is coming barely two weeks after the policy was announced. Nairametrics earlier reported that the policy would take effect on January 9, 2023.
More details on the reviews: In line with the review, the CBN made provisions for individuals and corporate organisations to withdraw above the specified limits under special circumstances. However, any request to exceed the withdrawal limits “shall be subject to a processing fee of 3% and 5% for individuals and corporate organizations, respectively”.
Also, before processing any cash withdrawal request above the specified limits, financial institutions must get the following documents from their customers and forward the same to the CBN for approval:
- Valid means of identification of the payee (National ID, International Passport, or Driver’s License).
- Bank Verification Number (BVN) of the payee.
- Tax Identification Number (TIN) of both the payee and the payer.
- Approval in writing by the MD/CEO of the financial institution authorising the withdrawal.
Meanwhile, the CBN said cheques above N100, 000 will not be eligible for over-the-counter withdrawal. Also, the extant limit of N10 million on clearing cheques will subsist.
Further notice for OFIs: The CBN further directed Other Financial Institutions (OFIs) to ensure that monthly returns on cash withdrawals above the specified limits are rendered to the appropriate departments.
- OFIs were also advised to encourage their customers to use alternative channels like USSD, mobile banking, internet banking, POS, eNaira, etc.
- The CBN further warned OFIs that there will be consequences for anyone caught aiding and abetting the circumvention of the policy.
That’s a good development,that means the CBN has listened to the voice of reason….
was the governor threatened by the powers that be ?.
The upward review is adequate however it does not speak to the tech deficit in the telecoms sector. Also, the limit on daily interbank transfers is killing businesses. We hope the CBN can increase the.N1m interbank to accommodate more daily transactions rather than applying to banks for indemnity, which the banks may soon start charging. Why would it take a customer three days to exchange N3, million?
The ₦1m cap is on a general note. You can approach your bank and request for limit increase free of charge if the above general limit is not in tandem with your transaction values.