CBN changes cash withdrawal policy and increases weekly limits
The Central Bank of Nigeria has raised the limit on cash withdrawals by individuals and organizations.
Ahead of the distribution of the redesigned naira notes, the bank had announced a new policy on December 6 limiting over-the-counter cash withdrawals by individuals and businesses to N100,000 and N500,000, respectively, per week.
The upward revision comes after the National Assembly asked the bank to drastically adjust withdrawal limits in response to public outcry over the policy.
The new directive which was communicated through a letter to all banks and signed by the Director of Banking Supervision, Haruna Mustafa on Wednesday, now allows individuals to withdraw up to N500,000 per week and organisations, N5 million per week. The original limit was N100,000 for individuals.
In compelling circumstances where cash withdrawal exceeds the limits required for legitimate purposes, such requests will incur 3% and 5% processing fees for individuals and businesses, respectively.
And in such cases, financial institutions are advised to obtain at least some information from the customer and upload it to the CBN portal created for this purpose.
The information includes a valid means of beneficiary identification (national identity card, international passport or driver's license); Beneficiary Bank Verification Number (BVN); Payee and Payer Tax Identification Number (TIN); and written approval by the MD/CEO of the financial institution authorizing the withdrawal.
He also said that third party checks over N100,000 will not be eligible for payment over the counter, while the existing limit of N10 million on clearing checks still stands.
“Monthly reports on cash withdrawal operations exceeding the specified limits should be forwarded to the departments of banking supervision, supervision of other financial institutions and payment system management, as appropriate.< /p>
"Compliance with applicable AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction reporting, etc. is mandatory at all times.
"Customers should be encouraged to use alternative channels (online banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions," CBN said.
He said banks and mobile money agents are important players in the financial system, enabling access to financial services in underserved and rural communities.
“They will continue to carry out these strategic functions, in accordance with the regulations in force governing their activities.
"CBN recognizes the vital role cash plays in supporting underserved and rural communities and will ensure an inclusive approach in implementing the transition to a cashless society."
He warned of severe sanctions against banks complicit in the new directive.
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The Central Bank of Nigeria has raised the limit on cash withdrawals by individuals and organizations.
Ahead of the distribution of the redesigned naira notes, the bank had announced a new policy on December 6 limiting over-the-counter cash withdrawals by individuals and businesses to N100,000 and N500,000, respectively, per week.
The upward revision comes after the National Assembly asked the bank to drastically adjust withdrawal limits in response to public outcry over the policy.
The new directive which was communicated through a letter to all banks and signed by the Director of Banking Supervision, Haruna Mustafa on Wednesday, now allows individuals to withdraw up to N500,000 per week and organisations, N5 million per week. The original limit was N100,000 for individuals.
In compelling circumstances where cash withdrawal exceeds the limits required for legitimate purposes, such requests will incur 3% and 5% processing fees for individuals and businesses, respectively.
And in such cases, financial institutions are advised to obtain at least some information from the customer and upload it to the CBN portal created for this purpose.
The information includes a valid means of beneficiary identification (national identity card, international passport or driver's license); Beneficiary Bank Verification Number (BVN); Payee and Payer Tax Identification Number (TIN); and written approval by the MD/CEO of the financial institution authorizing the withdrawal.
He also said that third party checks over N100,000 will not be eligible for payment over the counter, while the existing limit of N10 million on clearing checks still stands.
“Monthly reports on cash withdrawal operations exceeding the specified limits should be forwarded to the departments of banking supervision, supervision of other financial institutions and payment system management, as appropriate.< /p>
"Compliance with applicable AML/CFT regulations relating to KYC, ongoing customer due diligence, currency and suspicious transaction reporting, etc. is mandatory at all times.
"Customers should be encouraged to use alternative channels (online banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions," CBN said.
He said banks and mobile money agents are important players in the financial system, enabling access to financial services in underserved and rural communities.
“They will continue to carry out these strategic functions, in accordance with the regulations in force governing their activities.
"CBN recognizes the vital role cash plays in supporting underserved and rural communities and will ensure an inclusive approach in implementing the transition to a cashless society."
He warned of severe sanctions against banks complicit in the new directive.
Support the integrity and credibility journalism of PREMIUM TIMES
Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, a...
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