CBN Cash Withdrawal Limit – Everything you need to know about the Apex Bank New Policy
The Central Bank of Nigeria, CBN has announced a new policy that banks and other financial institutions must make sure that over-the-counter cash withdrawals by both individuals and corporate entities do not exceed N100,000 and N500,00 per week, respectively.
The updated cash withdrawal limits will be in force nationwide starting on January 9, 2023, according to a circular released today by the apex bank and obtained by Ejesgist.ng.
All cash withdrawal over the specified limits will be subject to processing fees of 5% and 10%, respectively, once the policy goes into effect.
CBN Cash Withdrawal Limit for Individuals, Cooperate organizations, POS
The newly revised N200, N500, and N1000 banknotes were introduced by President Muhammadu Buhari just a few weeks prior to the implementation of the new policy.
Any third-party checks that are worth more than N50,000 will not be processed over the counter by any bank in accordance with the new cash withdrawal caps.
According to the CBN, there are still “extant limits of N10,000,000 on clearing cheques.”
The amount that each person may withdraw each week from an ATM will be lowered to N100,000. A daily withdrawal cap of N20,000 will also apply to withdrawals made via this channel.
In a similar vein, N20,000 is the daily withdrawal cap for POS terminal withdrawals.
ATM to Dispense Only 200 Naira Notes- CBN Cash Withdrawal LimitÂ
It should be noted that only N200 and lower will be made available through the channel, so the new N500 and N1000 banknotes cannot be withdrawn through ATMs.
According to the CBN, there is a provision that allows both individuals and corporations to withdraw N5 million and N10 million once per month, respectively. This is only applicable in exceptional circumstances, and all parties wishing to make use of this provision must offer convincing proof of their bona fide business objectives.
“Cash withdrawals above the prescribed limits shall not exceed N5, 000,000 and N10, 000, 000 for individuals and corporate organizations, respectively, and shall be subject to the referenced processing fees in (1) above, in addition to the enhanced due diligence and further information requirements, not more than once a month.”
Individuals and corporate entities must provide the following details to be eligible for this exception:
- Acceptable methods of identification.
- Bank verification number
- Customer’s notarized declaration
- outlining the justification for the excessive cash withdrawal.
For drawees withdrawing on behalf of companies, the Managing Directors must give their written consent.
Read Also: BREAKING: CBN Reduces Over-The-Counter Withdrawals To N100k, N500k Per Week For Individuals And Companies
Such withdrawals must have written authorization from the bank CEOs.
According to the CBN, the revised cash withdrawal limit policy is consistent with its cashless policy.
Goal of the CBN Cash Withdrawal LimitÂ
The ultimate goal is to persuade more Nigerians to conduct their banking transactions through alternative channels. These alternate channels include, for instance, mobile banking, USSD, debit cards, POS, eNaira, etc.
The policy is also a part of the apex bank’s plans to safeguard against misuse, forgery, and hoarding of the newly redesigned banknotes.
Given the recent news that the money supply in the Nigerian economy increased to an all-time high of N49 trillion in August, this is especially crucial.
Inflation is encouraged by an excess of money in circulation. Additionally, Nigeria has struggled with a high inflation rate that reached 21.09% in October 2022.
In response, the CBN raised the benchmark interest rate (MPR) to 16.5% during its final Monetary Policy Committee (MPC) meeting of the year, an increase of 100 basis points.
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