The Central Bank of Nigeria has increased the maximum weekly limit for cash withdrawals by individuals and corporate organizations across all channels to N500,000 and N5 million, respectively.
The decision is contained in a circular published by the bank on Wednesday and signed by Haruna Mustafa, director of banking supervision.
The move comes just two weeks after the CBN decreased the weekly over-the-counter cash withdrawal limit for individuals to N100,000 and for corporate entities to N500,000.
The bank also limited withdrawals at ATMs and point-of-sale terminals to N20,000 per day.
Nigerians had conflicting feelings about the policy.
According to the circular, the apex bank made the upward revision based on comments from stakeholders.
“The CBN hereby reviews the following:
- The maximum weekly limit for cash withdrawals by individuals and corporate organizations across all channels shall be N500,000.00 and N5,000,000.00, respectively.
- In compelling situations when cash withdrawal over the restrictions 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 entities, respectively.
In addition to (2) above, the financial institution must collect the following data from the client and upload it to the CBN portal established for that purpose: a valid form of identification for the payee (such as a national ID, passport, or driver’s license), the payee’s bank verification number (BVN), the payer’s tax identification number (TIN), and a written authorization from the MD or CEO of the financial institution.
“While the existing limit of N10 million on clearing cheques still exists, third party cheques beyond N100,000 shall not be eligible for payment over-the-counter.”
The CBN stated that monthly refunds on cash withdrawal transactions exceeding the set limits should be made to the banking supervision department, the supervision of other financial institutions, and the payments system management department.
“In all instances, compliance with existing AML/CFT requirements relating to KYC, continuing customer due diligence, suspicious transaction reporting, and so on is necessary,” it noted.
“Customers should be encouraged to make their banking transactions through alternate channels (online banking, mobile banking apps, USSD, cards/POS, eNaira, etc.).
The central bank stated that it recognizes the critical function that cash plays in assisting underserved and rural populations and that it will take an inclusive approach as it conducts the transition to a cashless society.
The CBN stated that monthly refunds on cash withdrawal transactions exceeding the set limits should be made to the banking supervision department, the supervision of other financial institutions, and the payments system management department.
“In all instances, compliance with existing AML/CFT requirements relating to KYC, continuing customer due diligence, suspicious transaction reporting, and so on is necessary,” it noted.
“Customers should be encouraged to make their banking transactions through alternate channels (online banking, mobile banking apps, USSD, cards/POS, eNaira, etc.).
The central bank stated that it recognizes the critical function that cash plays in assisting underserved and rural populations and that it will take an inclusive approach as it conducts the transition to a cashless society.
