On Wednesday, the Central Bank of Nigeria (CBN) raised the maximum weekly limit for cash withdrawals by individuals and corporate organizations to N500,000 and N5,000,000, respectively.
In a circular that the bank produced and had Haruna Mustafa, the director of the banking supervision department, sign, the CBN acknowledged this.
The change occurs two weeks after the CBN lowered the weekly over-the-counter cash withdrawal limits for individuals and business organizations to N100,000 and N500,000, respectively.
The bank also limited daily withdrawal limit at point-of-sale terminals and automated teller machines (ATMs) to N20,000.
Nigerians reacted to the policy in a variety of ways. Although some claimed it would hurt small businesses, others praised it as a clever measure to advance the cashless policy and reduce the quantity of currency outside the banking system.
The top bank stated in the circular that it based its upward evaluation on input from stakeholders.
The Central Bank of Nigeria (CBN) announces the following revisions in a circular: “(1) The maximum weekly limit for cash withdrawal by individuals and corporate organizations through all channels should be N500,000.00 and N5,000,000.00, respectively.”
“2. Where cash withdrawals over the limits in (1) are necessary for justifiable reasons, there will be a processing fee of 3 percent for private people and 5 percent for corporate organizations.
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In addition to (2) above, the financial institution must collect the following data from the client and upload it to the CBN portal established for that purpose: a valid form of identification for the payee (such as a national ID, passport, or driver’s license), the payee’s bank verification number (BVN), the payer’s tax identification number (TIN), and a written authorization from the MD or CEO of the financial institution.
“While the existing limit of N10 million on clearing cheques still exists, third-party cheques beyond N100,000 shall not be eligible for payment over-the-counter.”
According to the CBN, monthly returns on cash withdrawal transactions that exceed the predetermined limitations should be provided to the departments in charge of banking supervision, other financial institution supervision, and payments system management.
Compliance with current AML/CFT rules relating to KYC, continuous customer due diligence, suspicious transaction reporting, etc., was also emphasized in the statement.
“Use of alternate channels (such as online banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) for banking transactions should be encouraged for customers.
The apex bank asserted that it understands the critical function that cash plays in assisting underserved and rural populations and that it will take all necessary steps to guarantee an inclusive transition to a more cashless society.
All banks and OFls should be aware that helping to bypass this regulation may result in harsh consequences, the CBN warned.