CBN limits cash withdrawals to N100,000 weekly
The Central Bank of Nigeria, CBN, has issued a revised cash withdrawal policy, stating that cash withdrawals exceeding N100,000 and N500,000 will now attract 5% and 10%, respectively, as part of the naira redesign policy.
In addition, the apex bank stated that from now on, ATMs will only pay N200 and lower denominations.
On Monday, the CBN’s director of banking supervision, Haruna Mustafa, sent a letter to all Deposit Money Banks, other financial institutions, primary mortgage banks, and microfinance banks.
According to the letter referenced with the BSD/DIR/PUB/LAB/015/069, a third-party cheque above N50,000 will not be eligible for payment Over the counter, OTC, and maximum ATM withdrawal shall be N20,000 per day.
It added that the maximum cash withdrawal via the point of sale (PoS) terminal should be N20,000.
“The maximum cash withdrawal over the counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000, respectively.
“Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively; 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; the maximum cash withdrawal per week via Automated Teller Machine (ATM) shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day; Only denominations of N200 and below shall be loaded into the ATMs; The maximum cash withdrawal via point of sale (PoS) terminal shall be N20,000 daily and in compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, such cash withdrawals shall not exceed N5,000,000 and 10,000,000 for individuals and corporate organizations,” the letter stated.
The CBN had on October 26 made known its plan to redesign 200, 500 and 1000 naira denominations. It gave December 15, 2022, as the date to start circulating the new notes, while it plans to stop the usage of old naira notes from January 31, 2023.