The Central Bank has directed deposit money banks and other financial institutions to ensure that over-the-counter cash withdrawals by individuals and corporate entities per week do not exceed N100,000 and N500, 000, respectively.
The directive is contained in a circular issued by the bank on Tuesday. The CBN said the policy will take effect nationwide from January 9, 2023.
It explained that after the policy takes effect, all cash withdrawals in excess of the stated limits will attract processing fees of 5 per cent and 10 per cent, respectively.
“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 cash-less 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 organisations per week shall henceforth be N100,000 and N500,000, respectively. Withdrawals above these limits shall attract processing fees of 5 per cent and 10 per cent, respectively,” the circular signed by Haruna Mustafa, director of the banking supervision department, reads.
“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 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.”
“Only denominations of N200 and below shall be loaded into the ATMs. The maximum cash withdrawal via point of sale (PS) terminal shall be N20,000 daily.”
The CBN, however, said in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5 million and N10 million for individuals and corporate organisations, respectively.
It said such transactions will be subjected to processing fees in addition to enhanced due diligence and further information requirements.
“You are required to obtain the following information at the minimum and upload the same on the CBN portal created for the purpose:
a. Valid means of identification of the payee (national ID, international passport, driver’s license).
b. Bank verification number (BVN) of the payee.
C. Notarised customer declaration of the purpose of the cash withdrawal.
d. Senior management approval for the withdrawal by the managing director of the drawee, where applicable.
e. Approval in writing by the MD/CEO of the bank authorising the withdrawal,” the circular adds.
The apex bank also asked Nigerians to note that “monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department”.
“Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances,” it said.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.
“Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.
“The above regulatory directives take effect nationwide from January 9, 2023.”