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CBN Increases Cash Withdrawal Limit | READ FULL DETAILS

Faith Ukanwa

Dec 22, 2022

CBN Increases Cash Withdrawal Limit | READ FULL DETAILS
The Central Bank of Nigeria (CBN), has adjusted the cash withdrawal limit policy which is scheduled to take effect, January 9, 2023.

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https://youtu.be/NC-IVFnWe6w

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Recall that the CBN had on December 6, 2022, announced a new cash withdrawal limit as N20,000 per day for individuals and 100,000 weekly, while corporate bodies was fixed at N500,000 weekly.

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The decision sparked reactions with many calling on the CBN to readjust.

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Announcing the change in a circular dated December 21, and signed by the Director of Banking Supervision, Mr Haruna Mustapha, the CBN fixed N500,000 weekly withdrawal for individuals and N5million for corporate organisations.

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According to the CBN, any withdrawal above the set limits must be approved by the Managing Director of the bank in writing.

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It added that Third Party Cheques above N1 million will not be eligible for over-the-counter withdrawal.

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The apex bank warned that any bank that connives with its customers to circumvent the policy would face severe sanctions.

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The circular reads in part:

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"Following our circular BSD/DIRIPUB/LAB/015/069 dated December 6, 2022, on the above subject and based on feedback received from stakeholders, the CBN, hereby makes the following reviews:

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"The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000 and N5,000,000, respectively.

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"In compelling circumstances where cash withdrawal above the limits in (1) above is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.

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"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

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a. 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.

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"Third-party cheques above N100,000 shall not be eligible for payment over the counter, while the extant limit of N10million on clearing cheques still subsists.

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"Kindly further note the following: "Monthly, returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.

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"Compliance with extant AML/CFT regulations relating to KYC, ongoing Customer due diligence, CDD, currency and suspicious transaction reporting, STR etc., is mandatory in all circumstances.

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"Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.

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"Bank and Mobile Money Agents are important participants in the financial system, enabling access to financial services in underserved and rural communities. They will continue to perform these strategic functions, in line with existing regulations governing their activities.

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"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.

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"All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions.

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"The above directives supersede that of December 6, 2022, and take effect nationwide from January 9, 2023.ÔÇØ

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— Faith Ukanwa

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