The Central Bank of Nigeria (CBN), has announced that over the-the-counter cash withdrawals by individuals and corporate entities do not exceed N100,000 and N500,000 respectively, weekly. All deposit money banks and other financial institutions are mandated to adhere to this.
This was disclosed in a circular issued today by the apex bank and will take effect nationwide on January 9, 2023.
It was also revealed that all cash withdrawals above the stated limits will attract processing fees of 5% and 10% respectively, once the policy is implemented.
The new policy is coming barely weeks after President Muhammadu Buhari launched the newly redesigned N200, N500, and N1000 banknotes.
Read Also: Buhari Unveils The Newly Redesigned Naira Notes
Third-Party Cheques Above N50,000 Will Not Be Processed
The memo noted that any third-party cheques above N50,000 will not be processed over the counter by the bank. According to the bank, the CBN, the “extant limits of 10,000,000 on clearing cheques still subsist”.
For weekly withdrawals through automated teller machines (ATMs), it will be reduced to N100,000 per individual. This means customers can make a withdrawal limit of N20,000 per day.
Diving to the withdrawal limit through point of sale (POS) terminals, that goes for N20,000 per day.
Note that the new N500 and N1000 banknotes will be withdrawn through ATMs. Only N200 and below will be made available through this medium.
Provision For Individuals and Corporates Bodies
Individuals and corporates can withdraw N5 million and N10 million each once a month. Note that this is only for the rare occasions in which the intending party must provide genuine evidence of legitimate business purposes.
“In compelling circumstances, not exceeding once a month, where cash withdrawal above the prescribed limits is required for legitimate purposes, such cash withdrawals 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.”
To qualify for this exception, individuals and corporate organizations must provide the following information;
- Valid means of identification
- Bank verification number (BVN)
- Notarized declaration by the customer stating the reason for the excess cash withdrawal.
- Written approval by the Managing Directors for drawees withdrawing on behalf of companies.
- The CEO of banks must authorize such withdrawals in writing.
Follow techkudi.com for more juicy fintech and tech news
