The Central Bank of Nigeria, CBN has increased its weekly cash withdrawal limits to N500,000 and N5,000,000 for individual and corporate organizations respectively.
The latest review is contained in a circular issued by the bank on Wednesday and signed by the director of the banking supervision department, Haruna Mustafa.
This is coming two weeks after the CBN introduced a weekly over-the-counter cash withdrawal limit for individuals to N100,000 and of corporate organizations to N500,000. While withdrawals at Automated Teller Machines and point-of-sale terminals were pegged at N20,000 daily.
The policy had generated mixed reactions among Nigerians, especially business owners and PoS Operators across the country, with the House of Representatives also wading into the matter.
In the Wednesday circular, the apex bank said it made the upward review based on feedback received from stakeholders.
The circular reads in part, “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 percent and five percent for individuals and corporate organizations, respectively.”
“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload the same on the CBN portal created for the purpose: valid means of identification of the payee (national ID, international passport, or driver’s license), bank verification number of the payee, tax identification number of both the payee and the payer, and an approval in writing by the MD/CEO of the financial institution authorizing the withdrawal.
“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 subsists.”
According to the CBN, 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.
“Compliance with extant AML/CFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions,” the CBN maintained.
The apex bank however noted that it recognized 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 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 CBN said.