CBN Increases Cash Withdrawal Limits to N.5m Weekly

December 21, 2022
cash withdrawal limits

By Adedapo Adesanya

Two weeks after the introduction of proposed cash withdrawal limits, the Central Bank of Nigeria (CBN) has reviewed the set benchmarks as it increased the maximum weekly limit for cash withdrawal across all channels by individuals to N500,000 and corporate organisations to N5 million.

In a circular dated December 21 sent to financial institutions and signed by Mr Haruna Mustafa, its Director of Banking Supervision, the apex bank said the decision is based on feedback received from stakeholders.

It, however, noted that 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.

The lender also changed circumstances where cash withdrawal above the limits is required for legitimate purposes, with the processing fees slashed to 3 per cent and 5 per cent for individuals and corporate organizations against 5 per cent and 10 per cent previously.

It noted that in the instance that such occurs, the financial institution must collect a valid ID card, Bank Verification Number (BVN) of the payee, Tax Identification Number (TIN) of both the payee and the payer, and the approval in writing by the MD/CEO of the financial institution authorising the withdrawal.

Other parts of the circular noted that, “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.

“Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction reporting, etc., is mandatory in all circumstances.”

The CBN also encouraged the use of alternative channels such as internet banking, mobile banking apps, and USSD to mitigate the need to pass through these hurdles.

The CBN also added that “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.

“The CBN recognizes 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,” it warned.

The directive will become operational on January 9, 2023.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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