The Central Bank of Nigeria has stated that as from 9th of January 2023 they would be limit withdrawal of cash from the counter for both individual and organisations within N50,000 for individuals and N100,000 for organisations weekly.
This was directed via a statement signed by Haruna B. Mustafa, director of banking supervision.
He highlighted that this directive came as the apex bank is planning to begin the distribution of the newly designed bank notes, while adding that the naria design is to reduce inflation, counterfeit and corruption.
” To promote cashless policy CBN has restricted ATM transactions to N20 000 all in a 200 denomination weekly, while imposing a limit on cash withdrawals in the counter for individuals to N100 000 weekly and N500 000 weekly for businesses”, he said.
According to the apex bank withdrawals over the limits would attract a processing fee of 5% for individuals and 10% for Organizations. This development came two weeks after the bank unveiled its newly redesigned N1 000 N500 and N200 notes on November 23 2022.
The bank had further lamented in October that 85% of money in circulation is not in bank vaults and is hoarded by the public.
“In addition to the launch of the redesigned Naira notes by the President of the Federal Republic of Nigeria, on Wednesday 23 November 2022 and in line with the CBN’s cashless policy, all deposit money banks ( DMB) ) and other financial institutions (OFIS) are ordered to take note and comply with the following:
“The maximum over-the-counter (OTC) cash withdrawal by individuals and corporate organizations per week will henceforth be N100,000 and N500,000 respectively.
Withdrawals above these limits will attract processing fees of 5% and 10% respectively”, he said.
Furthermore, “Third party checks above N50,000 will not be eligible for cash pickup, while the existing limits of N10,000,000 on Gearing checks still remain.
“The maximum cash withdrawal per week through Automat. The ATM will be N100,000 subject to a maximum of N20,000 cash withdrawals per day on “Only denominations of N200 and below will be charged at ATMs. The maximum cash withdrawal through the point of sale (PoS) terminal will be N20,000 per day.
“In exigent circumstances, not to exceed once a month, when cash withdrawals in excess of prescribed limits are required for legitimate purposes. such cash withdrawals will not exceed N5,000,000 00 and N10,000,000.00 for individuals and corporate organizations, respectively, and will be subject to the processing fees mentioned above, in addition to enhanced due diligence requirements and further information.” said Mustafa.
The CBN noted that clients will need to obtain a valid form of identification.
Bank Verification Number
Others will be the Bank Verification Number of the beneficiary, the client’s Notarial statement of the purpose of the cash withdrawal for cash above limited before the needed time via online.