CBN reconsiders policy on withdrawals, raises limits

THE Central Bank of Nigeria (CBN) has reviewed upward its cash withdrawal limit directive, 15 days after issuing the policy.

The apex bank had on December 6, 2022 issued a directive to commercial banks and financial institutions limiting daily automated teller machine (ATM) withdrawal to N20,000, while also limiting over-the-counter withdrawals for individuals and corporate organisations to N100,000 and N500,000 respectively.

However, in a circular it issued today, the CBN confirmed an upward review of its cash withdrawal limit, directing that individuals can now withdraw N500,000 cash weekly and up to N5 million for corporate entities from January 9, 2023.

The Director of Banking Supervision, Haruna B. Mustafa, who signed the circular, stated, “The maximum weekly limit for cash withdrawal across all channels by individuals and corporate organizations shall be N500,000 and N5,000,000 respectively.

“The above directive supersedes that of December 6, 2022 and takes effect nationwide from January 9, 2023.”

The notice was directed to all deposit money banks (DMBS) and other financial institutions payment service banks (PSB), primary mortgage banks (PMB), microfinance banks (MFBs), mobile money operators (MMOs) and agents.




     

     

    The CBN said the review was based on the feedback it got from stakeholders after issuing the December 6 circular that limited cash withdrawal to N100,000 for individuals and N500,000 for companies.

    The apex bank, however, retained the caveat for legitimate cash withdrawal above the limits as such requests shall be subject to a processing fee of 3 per cent and 5 per cent for individuals and corporate organizations respectively, but through a portal with the customer’s details, including valid ID card, tax ID and BVN.

    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, it noted.

    “The CBN recognizes 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,” it added.

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    Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.

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