The Central Bank of Nigeria has set limits on withdrawals above a certain threshold in Nigeria
According to the bank, individuals cannot withdraw above N100,000 weekly via the counter and other outlets
However, banks are required to carry out due diligence for those wishing to withdraw above the prescribed limit
On Tuesday, December 6, 2022, the Central Bank of Nigeria set limits on weekly cash withdrawals by persons and corporate bodies.
The new directive would become effective on January 9, 2023.
CBN policy meant to curb excess cash in circulation
The new policy will take effect on January 9, 2023 .
The policy is meant to reduce the amount of physical cash circulation in Nigeria and encourage electronic transactions.
The apex said it would seriously impose severe sanctions on banks and financial institutions violating the new policy.
The new directive comes two weeks after it launched the redesigned N200, N500 and N1,000 naira notes.
However, individuals and corporate bodies can withdraw above the CBN limit if they provide specific documentation.
Documents required to withdraw above limit
TheCable reports that for cash withdrawals above the specified limits, banks are required to do due diligence. There are required to request documents such as the bank verification number (BVN) of the payee, and valid means of identification of the payee, among others.
Below are 10 things to know about the new policy.
- Over-the-counter cash withdrawal by individuals and organisations per week is now reduced to a maximum of N100,000 and N500,000, respectively.
- Third-party cheques above N50,000 will not be eligible for payment over the counter.
- The existing limit of N10 million on clearing cheques still subsists.
- Cash withdrawal via automated teller machine (ATM) is limited to a maximum of N20,000 daily, while the weekly limit is N100,000.
- Only naira denominations of N200 and below will be available at ATMs.
- Maximum withdrawal from the point of sale (PoS) terminals will be N20,000 daily.
- Once a month, the CBN says it will allow individuals and organisations to make cash withdrawals above the prescribed limits if it is required for legitimate purposes.
- The “special” cash withdrawals cannot exceed N5 million and N10 million for individuals and organisations, respectively.
- Individuals will be required to pay a processing fee of five per cent for cash withdrawals above the prescribed limits, while organisations will pay 10 per cent.
- For cash withdrawals above the specified limits, banks must do due diligence and request documents such as the bank verification number (BVN) of the payee, and valid means of identification of the payee, among others.