By Bassey Udo
The Central Bank of Nigeria (CBN) has raised the maximum weekly limits for cash withdrawals across the counter for all channels to N500,000 and N5 million for individual and corporate customers respectively.
The revision was contained in Circular No. BSD/DIR/PUB/LAB/015/073 dated December 21, 2022, signed by the CBN Director of Banking Operations, Haruna Mustafa, to all deposit money banks and other financial institutions, including Payment Service Banks, Primary Mortgage Banks, Microfinance Banks, Mobile Money Operators, and agents.
The circular said the latest directive supersedes the previous circular issued on December 6, 2022, which fixed the weekly cash withdrawal limits across the counter by bank customers at N100,000 for individuals and N500,000 for corporate entities. The CBN had also pegged the maximum weekly cash withdrawal by customers through the Automated Teller Machine (ATM) at NI00,000 a week, subject to a ceiling of N20,000 cash withdrawal per day.
A groundswell of criticisms trailed the December 6 directive, with most Nigerians, especially politicians pressurizing for an upward revision of the limits by the CBN.
Despite the pushback by some Nigerians, including members of the National Assembly, the CBN governor, Godwin Emefiele, during a visit to President Muhammadu Buhari in Daura, Katsina State insisted there was no going back on the policy.
He, however, gave an assurance that the CBN would not be rigid, but would from time to time carry out reviews of the workings on the policy to sustain and deepen the cashless policy and the development of the Nigerian economy.
In the latest circular titled: “Re: Naira Redesign Policy – Revised Cas Withdrawal Limits”, the CBN said the decision to revise the weekly cash withdrawal limits was based on the feedback received from stakeholders.
The apex bank also revised the rate chargeable as processing fees for individuals and corporate entities compelled by circumstances to withdraw above the stipulated limits for legitimate purposes, from 5 percent to 3 percent for individuals, and 10 percent to 5 percent for corporate customers.
To continue to enhance due diligence, the CBN said banks shall continue to demand customers’ valid means of identification, including National ID, International Passport, or Driver’s License, Bank Verification Number (BVN), Tax identification Numbers of the payee and payer, as well as approval in writing by the MD/CEO of the financial institution authorizing the withdrawal.
Payments over the counter for third-party cheques, which were previously limited to N50,000, has now been revised to N100,000, while the extant limit of N10 million on clearing cheques would subsist.
All other policy decisions, especially on strict compliance with the extant anti-money laundering/combating financing of terrorism (AML/CFT) regulations relating to know your customers (KYC) documentation to ensure due diligence and reporting on suspicious transactions were sustained.
“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,” the CBN.
It warned all banks and OFIs against aiding and abetting the circumvention of cashless policy, as culprits risk severe sanctions.
