CBN Limits Cash Withdrawals to N100,000 a Week Starting January 9th

The Central Bank of Nigeria (CBN) in a new circular to all Deposit Money Banks has limited the cash withdrawals by individuals in banks over the counter (OTC) to N100,000 a week.

The limit set on Corporate accounts is N500,000 a week, the circular dated December 6, seen by MoneyCentral said.

Withdrawals above these amounts will attract processing fees of 5% and 10% respectively. This is a fallout from the recent Naira redesign and cashless policy of the CBN.

Point of Sales (POS), and ATM withdrawals is set at a maximum of N20,000 a day for a total of N100,000 a week.

Only denominations of N200 and below shall be loaded into ATMs, according to the CBN.

Third party cheques above N50,000 shall not be eligible for payment over the counter, while limits of N10 million on clearing cheques still remains in force, the CBN said.

In compelling circumstances, not exceeding once a month, where cash withdrawals above the set limits is required for legitimate purposes, such cash withdrawals shall not exceed N5 million and N10 million for individuals and corporate organisations, respectively, and shall be subject to the processing fees of 5% and 10%, plus enhanced due diligence and further information requirements, the CBN said.

To pay cash of up to N5million for individuals and N10 million for corporates as stated in the compelling circumstances stated above, banks are to obtain the following information from their customers:

• Valid means of identification of the payee (National ID, International Passport, Driver’s License)
• Bank Verification Number (BVN) of the payee
• Notarised customer declaration of the purpose for the cash withdrawals.
• Senior management approval for the withdrawal by the Managing Director of the drawee
• Approval in writing by the MD/CEO of the bank authorising the withdrawal.

Banks are also required to provide:

• Monthly returns on cash withdrawal transactions above the specified limits to the Bank Supervision Department.
• Comply with AML/CFT regulations relating to KYC

“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 said.