CBN bows to Pressure reviews Cash Withdrawal Limit

Amidst criticism that trailed its earlier policy on over-the-counter (OTC) and ATM/POS cash withdrawal limit, the Central Bank of Nigeria has reviewed the weekly cash withdrawal limit across all channels by individual and corporate organizations. 

What is the new withdrawal limit? 

A circular signed by CBN’s Director of banking supervision, Haruna Mustafa pegged the weekly withdrawal limit for individuals at N500,000 and N5 million for corporate organizations. The circular stated that the new policy follows feedback from stakeholders on CBN’s December 6 circular which had pegged the daily cash withdrawal limit for individuals at N100, 000 and N500, 000 for corporate organizations.     

The circular added that 3% and 5% processing charges would apply respectively for individual and corporate organizations in situations where “cash withdrawal above the limit is required for legitimate purposes,” noting that financial institutions will be required to obtain customer’s valid means of identification such as national ID, international passport or driver’s license, BVN, and Tax Identification Number of both the payee and the payer in addition to approval in writing by the MD/CEO of the financial institution, which is to be uploaded on the CBN portal created for the purpose before such withdrawal is authorized. 

What else?

The circular also noted that “third party cheques above N100, 000 shall not be eligible for payment over the counter” but maintained that the extant limit of N10 million on clearing cheques “still subsists.” 

CBN said it acknowledges the vital role cash plays in supporting underserved and rural communities, but encouraged customers to adopt alternative channels (internet banking, mobile banking apps, USSD Cards/POS, e-naira) in conducting banking transactions, noting that it would “ensure an inclusive approach” in transitioning into a cashless society. 

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