CBN reviews cash withdrawals to N500,000 weekly

The Central Bank of Nigeria (CBN) has set N500,000 as the maximum limit for weekly cash withdrawal over the counter by individuals.

CBN also set N5,000,000 as the maximum withdrawal by organisations with effect from January 9, 2023.

The apex bank made this known via a memo signed by the Director of Banking Supervision, CBN, Haruna Mustafa, on Tuesday.

The review came amidst opposition to the initial regulation.

The CBN had recently set weekly maximum withdrawal for individuals at N100,000 and N5,000,000 for corporate.

The CBN noted that cash withdrawals above the stated limit will attract a processing fee of 5 per cent for individuals and 10 per cent for organisations.

However, the apex bank, on Tuesday, hinged the upward review on the feedback received from stakeholders.

“The CBN hereby makes the following reviews: (1) the maximum weekly limit for cash withdrawal across all channels by individuals and corporate organisations shall be N500,000.00 and N5,000,000.00 respectively.

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“2. In compelling circumstances where cash withdrawal above the limits in (1) is required for legitimate purposes, such requests shall be subject to a processing fee of three per cent and five per cent for individuals and corporate organisations, respectively.

“Further to (2) above, the financial institution shall obtain the following information from the customer, at the minimum, and upload same on the CBN portal created for the purpose: valid means of identification of the payee (national ID, international passport, or driver’s license), bank verification number of the payee, tax identification number of both the payee and the payer, and an approval in writing by the MD/CEO of the financial institution authorising the withdrawal.

“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 subsist.

“Monthly returns on cash withdrawal transactions above the specified limits should be rendered to the Banking Supervision, Other Financial Institutions Supervision and Payments System Management Departments as applicable.

“Compliance with extant AML/CFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances.

“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions,” the CBN stated.

The CBN added that bank and mobile money agents were important participants in the financial system, enabling access to financial services in underserved and rural communities.

“They will continue to perform strategic functions in line with existing regulations governing their activities.

“The CBN recognises 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 cash-less society.

“All banks and OFls are to note that aiding and abetting the circumvention of this policy will attract severe sanctions.

“The above directives supersede that of December 6, 2022, and take effect nationwide from January 9, 2023,” the apex bank noted.

The Star