The maximum weekly limit for cash withdrawals across all channels has been increased by the Central Bank of Nigeria.
The director of the banking supervision department signed the circular that contained the directive.
Two weeks after the CBN reduced the weekly over-the-counter cash withdrawal limit for individuals to ten thousand naira, there is a new development.
ATMs and point-of-sale terminals were reduced to twenty thousand naira daily.
According to the information gathered from Punch News Paper, the House of Representatives waded into the matter after the policy generated mixed reactions.
The upward review was based on feedback from stakeholders, according to the Wednesday circular.
1. The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organizations will be five hundred thousand naira and five million naira respectively.
2. In compelling circumstances where cash withdrawal above the limits in (1) is required for legitimate purposes, such requests will be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.
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: valid means of identification of the payee (national ID, international passport, or driver’s license), bank verification number.
The limit of ten million naira on clearing cheques still exists, but third party cheques above one hundred thousand naira will not be eligible for payment over-the-counter.
Monthly returns on cash withdrawal transactions above the specified limits should be given to the banking supervision department, as well as other financial institutions supervision and payments system management departments.
Compliance with the KYC, ongoing customer due diligence and suspicious transaction reporting are required in all circumstances.
Customers should use alternative channels to conduct their banking transactions.
The apex bank noted that it recognised the vital role that cash played in supporting underserved and rural communities and would ensure an inclusive approach as it implemented the transition to a more cashless society.
The above directives take effect nationwide from January 9, 2023.
