Home News CBN Reduces Cash Withdrawals to 100K Per Week
News - December 7, 2022

CBN Reduces Cash Withdrawals to 100K Per Week

New cash withdrawal restrictions for both individuals and organisations have been imposed by the Central Bank of Nigeria (CBN), and they go into effect on January 9, 2023.

Individuals will only be permitted to withdraw N100,000 per week (from ATMs, Point of Sale machines, or over the counter), according to a new memo to banks sent out on Tuesday and signed by the Director of Banking Supervision, Haruna B. Mustafa. Organisations will be permitted to access N500,000 per week.

Additionally, banks have been told to only load N200 and lesser denominations into their ATMs.

The memo

According to the memo furthering the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.), on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following: 

1. The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.

2. Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.

3. The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

4. Only denominations of N200 and below shall be loaded into the ATMs.

5. The maximum cash withdrawal via the point of sale terminal shall be N20,000 daily.”


Don’t Redesign the Naira: Experts Disagree With the CBN

More on CBN policies

The CBN stated such cash withdrawals shall not exceed N5,000,000.00 and N10,000,000.00 for individuals and corporate organisations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to enhanced due diligence and further information requirements. 

The CBN stated such cash withdrawals shall not exceed once a month in compelling circumstances where cash withdrawals above the prescribed limits would be required for legitimate purposes.

Additionally, it stated that banks were expected to collect the following data at a minimum and submit it to the CBN portal established for that purpose:

a. Valid means of identification of the payee (National Identity Card, International Passport, Drivers License.). 

b. Bank Verification Number of the payee. 

c. Notarised customer declaration of the purpose of the cash withdrawal. 

d. Senior management approval for the withdrawal by the Managing Director of the drawee, where applicable. 

e. Approval in writing by the MD and CEO of the bank authorising the withdrawal.

Please further note the following: i. Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision Department. 

ii. Compliance with extant AMUCFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc., is required in all circumstances. 

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

Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

The above regulatory directives take effect nationwide from January 9, 2023. Please be guided accordingly,” the memo added.


Chipper Cash Lays Off 12.5% of Its Staff

Leave a Reply

Check Also

10 Things You Didn’t About Super Footballer Pele

The legendary soccer player and Brazilian ambassador, Edson Arantes do Nascimento better k…