JUST IN : CBN restricts cash withdrawals for individuals and companies to N100k and N500k per week, respectively.

The Nigerian Central Bank (CBN) has introduced a new policy that requires deposit money banks and other types of financial institutions to ensure that cash withdrawals made over the counter by individuals and corporate entities do not exceed N100,000 and N500,000, respectively, per week. This mandate was announced in conjunction with the introduction of the new policy.

Individuals will only be able to withdraw N100,000 per week (from over-the-counter, Point Sale Machines, or Automated Teller Machines), according to a new memo to banks that was issued on Tuesday and signed by the Director of Banking Supervision, Haruna.B. Mustafa. Organizations, on the other hand, will be able to access N500,000 per week.

In addition, banks have been instructed to only put N200 bills and lesser denominations into ATM machines.

In the memo, it was stated, “Further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.), on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following:

“1. Beginning immediately, the maximum amount of cash that may be withdrawn over the counter by individuals and corporate organizations per week shall be set at N100,000 and N500,000 respectively. When these restrictions are exceeded, withdrawals will be subject to processing fees of 5% and 10%, respectively.

“2. Cheques from third parties with a value greater than N50,000 will no longer be accepted for payment over the counter, despite the fact that the existing limits of N10,000,000 on clearing cheques would continue to be enforced.

“3. The maximum amount of cash that may be withdrawn from an ATM in a single week is one hundred thousand Nigerian nairas, with a daily cap of twenty thousand nairas.

“4. Only bills with a face value of N200 or less are permitted to be loaded into ATMs.

“5. The daily withdrawal of a maximum of N20,000 in cash is permitted through the point-of-sale terminal.

“6. In exceptional situations, not more than once per month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organizations, respectively, and shall be subject to the processing fees referenced in (1) above, in addition to enhanced due diligence and further information requirements. “7. In exceptional situations, not more than once per month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N

“Further to the point made in (6) above, you are obliged to gather the following information at the very least and upload it on the CBN site that has been built specifically for this purpose:

“a. A legally acceptable method of identifying the payee (National Identity Card, International Passport, Drivers License.). b. The payee’s Bank Verification Number (BVN). c. A declaration from the customer, notarized, stating the reason for the cash withdrawal. d. Approval from senior management for the withdrawal, which should be given by the Managing Director of the drawee, if appropriate. e. The approval of the withdrawal must be written down and signed by the MD or CEO of the bank.

“In addition, kindly take note of the following: i. The Banking Supervision Department is to be notified of monthly returns on cash withdrawal transactions that are greater than the limits that have been stated. ii. Compliance with existing AMUCFT requirements relating to the KYC, continuous customer due diligence, and suspicious transaction reporting, etc., is necessary under all circumstances. iii. Customers should be encouraged to complete their financial transactions using other channels, such as internet banking, mobile banking apps, USSD, cards/point-of-sale, and eNaira, amongst other options.

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