From N100k to N500k weekly withdrawal limit – CBN finally amends policy

Recall that we reported that Central Bank of Nigeria placed a withdrawal limits over-the-counter withdrawals by individuals to N100,000 and corporate bodies to N500,000 on weekly basis.

The CBN policy also went ahead to ask banks to load only N200 and other lower denominations into their ATMs and limit ATM withdrawals for an Individual to N20,000 per day.

In a recent update, Raw Nigeria reports that the Central Bank of Nigeria have amended the withdrawal limit from N100,000 to N500,000 withdrawal limit for individuals.

CBN also increased corporate bodies withdrawal limit from N500,000 to N5 million across all channels including ATMs and POS.

The apex bank in a circular issued on Wednesday signed by its Director of Banking Supervision, Haruna Mustafa said:

“The Central Bank of Nigeria (CBN) hereby makes the following reviews: (1) the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000.00 and N5,000,000.00 respectively,”

“2. In compelling circumstances where cash withdrawal above the limits in (1) is required for legitimate purposes, such requests shall be subject to a processing fee of 3 per cent and 5 per cent for individuals and corporate organisations, respectively.

(3)“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload 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 (BVN) of the payee, tax identification number (TIN) of both the payee and the payer, and an approval in writing by the MD/CEO of the financial institution authorising the withdrawal.

“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 CBN said monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department, other financial institutions’ supervision and payments system management departments.

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

“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.

The apex bank said it recognises the vital role that cash plays in supporting underserved and rural communities and would ensure an inclusive approach as it implements the transition to a more cashless society.

“All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions,” CBN said.

“The above directives supersede that of December 6, 2022, and take effect nationwide from January 9, 2023.”