CBN increases individual cash withdrawal limit to N500,000 weekly
By Onome Amuge
The Central Bank of Nigeria (CBN) has reviewed its policy on cash withdrawal limits and increased the maximum weekly limit for cash withdrawals across all channels by individuals and corporate organisations to N500,000 and N5 million, respectively.
The new directive is contained in a circular addressed to all Deposit Money Banks (DMBS) and other financial institutions and agents, dated December 21,2022 ,and signed by Haruna Mustafa, the director of Banking Supervision department.
In the circular, the apex bank explained that it made the upward review based on feedback received from stakeholders.
The new CBN directive which supersedes that of December 6, 2022 and takes effect nationwide from January 9, 2023, means that individuals can withdraw a maximum of N500,000 per week, contrary to the earlier limits which pegged individual cash withdrawals per week at N100,000. Also, corporate organisations previously limited to weekly withdrawals of N500,000, can withdraw a maximum of N5 million per week.
The apex bank, however, maintained that in compelling circumstances where cash withdrawal above the weekly limits 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 this, it said 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 (BVN) of the payee, tax identification number (TIN) of both the payee and the payer, and an approval in writing by the managing director/chief executive officer of the financial institution authorising the withdrawal.
The CBN directed that 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.
The apex bank further noted that monthly returns on cash withdrawal transactions above the specified limits should be rendered to the banking supervision department, other financial institutions supervision and payments system management departments.
“Compliance with extant AML/CFT regulations relating to KYC, ongoing customer due diligence and suspicious transaction reporting etc. is required in all circumstances,” the circular stated.
The CBN warned all banks and other financial institutions (OFls) against aiding and abetting the circumvention of the policy as it will attract severe sanctions.
Based on the recent development, customers were encouraged to use alternative channels such as internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc. to conduct their banking transactions.
The apex bank also acknowledged the vital role that cash plays in supporting underserved and rural communities and pledged to ensure an inclusive approach as it implements the transition to a more cashless society.