CBN reviews cash withdrawal limit policy
The Central Bank of Nigeria (CBN) has reviewed its policy on cashless policy, fixing the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations at N500,000 and N5 million, respectively.
The CBN added that in compelling circumstances where cash withdrawal above the limits above is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.
According to the apex bank, the new policy supersedes the earlier one issued on December 6, 2022, and takes effect from January 9, 2023.
In a letter to All Deposit Money Banks (DMBS) and Other Financial Institutions, (Payment Service Banks (PSBS), Primary Mortgage Banks (PMBs), Microfinance, Banks (MFBS), Mobile Money Operators (MMOs) and agents dated December 21, 2022, with reference number: BSD/DIR/PUB/ LAB/015/073, the CBN said its decision to review the cash withdrawal limits policy was based on feedback received from stakeholders.
Tagged, “Re: Naira Redesign Policy – Revised Cash Withdrawal Limits,” and signed by Haruna B. Mustafa, Director of Banking Supervision, the CBN said, “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 subsist.”
The CBN added, “Bank and mobile money agents are essential participants in the financial system, enabling access to financial services in underserved and rural communities.
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They will continue to perform these strategic functions, in line with existing regulations governing their activities,” as “the CBN recognises the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cashless society.
“All banks and OFIs are to note that aiding and abetting the circumvention of this policy will attract severe sanctions.”
In furtherance to the re- vised policy, the CBN directs the financial institution to obtain some information from the customer, at the minimum, and upload the same on the CBN portal created for the purpose.
They are; “Valid means of identification of the payee (National ID, International Passport, or Driver’s Licence); Bank Verification Number (BVN) of the payee; Tax Identification Number (TIN) of both the payee and the payer; approval in writing by the MD/CEO of the financial institution authorising the withdrawal.”
The CBN also directed those concerned to note that “Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.
“Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction re- porting etc. is mandatory in all circumstances.
“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions.”
The CBN had in its earlier circular with reference number BSD/DIR/PUB/ LAB/015/069 and dated December 6, 2022, pegged minimum cash withdrawal by individuals over-the-counter at N100,000.00 per week and N500,000.00 for corporate bodies.
