Saturday, April 1, 2023

CBN limits cash withdrawals to N100,000 weekly, N20,000 daily through POS

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tiamin rice

The Central Bank of Nigeria, CBN, has announced new cash withdrawal limits for individuals and corporate organizations effective from January 9, 2023.

According to a memo to banks issued on and signed by the director of Banking Supervision, Haruna Mustafa, the apex bank pegged N100,000 per week for individuals from over the counter/POS and N500,000 for corporate organisations.

The new policy also limited individual Point of Service, POS, to N20,000 per day.

The circular read: “Further to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday, November 23, 2022 and in line with the Cashless policy of the CBN, all deposit money banks (DMBs) and other financial institutions (OFls) are hereby directed to note and comply with the following:

“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.

“Third party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.

The circular further stated that, the maximum cash withdrawal per week via Automated Teller Machine, ATM, shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

Also only denominations of N200 and below shall be loaded into the ATMs.

The maximum cash withdrawal via point of sale, POS, terminal shall be N20,000 daily, the circular further stated.

The circular further stated that in “compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits is required for legitimate purposes, such cash withdrawals shall not exceed and for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (I) above, in addition to enhanced due diligence and further information requirements.”

The CBN further directed the banks to obtain the following information at the minimum and upload same on the CBN portal created for the purpose. They are:

“Valid means of identification of the payee (National ID, International Passport, Driver’s License), Bank Verification Number (BVN) of the payee, Notarized customer declaration of the purpose for the cash withdrawal, Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable, and approval in writing by the MD/CEO of the bank authorising the withdrawal,” it added.

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